As
filed with the Securities and Exchange Commission on October 7, 2024
Registration
No. 333-282358
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Amendment
No. 2
to
FORM
S-1
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
CINGULATE
INC.
(Exact
name of registrant as specified in its charter)
Delaware |
|
2834 |
|
86-3825535 |
(State
or other jurisdiction of
incorporation
or organization) |
|
(Primary
Standard Industrial
Classification
Code Number) |
|
(I.R.S.
Employer
Identification
Number) |
1901
W. 47th Place
Kansas
City, KS 66205
(913)
942-2300
(Address,
including zip code, and telephone number, including
area
code, of registrant’s principal executive offices)
Shane
J. Schaffer
Chief
Executive Officer
Cingulate
Inc.
1901
W. 47th Place
Kansas
City, KS 66205
(913)
942-2300
(Name,
address, including zip code, and telephone number, including area code, of agent for service)
Copies
to:
Michael
J. Lerner, Esq.
Steven
M. Skolnick, Esq.
Lowenstein
Sandler LLP
1251
Avenue of the Americas
New
York, New York 10020
(212)
262-6700
Approximate
date of commencement of proposed sale to the public:
From
time to time after this registration statement becomes effective, as determined by the selling stockholder.
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, check the following box. ☒
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large
accelerated filer ☐ |
|
Accelerated
filer ☐ |
Non-accelerated
filer ☒ |
|
Smaller
reporting company ☒ |
|
|
Emerging
growth company ☒ |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act. ☐
The
Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the
Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date
as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
The
information contained in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration
statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities
and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
PRELIMINARY
PROSPECTUS |
|
SUBJECT
TO COMPLETION |
|
DATED
OCTOBER 7, 2024 |
1,500,000
Shares of Common Stock
Cingulate
Inc.
This
prospectus relates to the offer and resale of up to 1,500,000 shares of our common stock, par value $0.0001 per share, by Lincoln Park
Capital Fund, LLC, which we refer to in this prospectus as “Lincoln Park” or the “selling stockholder.” We may,
from time to time in our discretion, issue and sell to Lincoln Park the shares of common stock to which this prospectus relates, which
we refer to as “Purchase Shares,” upon the terms and subject to satisfaction of the conditions in the purchase agreement,
dated as of April 24, 2023, that we entered into with Lincoln Park, which we refer to as the “Purchase Agreement.”
See
“The Lincoln Park Transaction” for descriptions of the Purchase Agreement and “Selling Stockholder” for additional
information regarding Lincoln Park.
We
are not selling any securities under this prospectus and will not receive any of the proceeds from the resale by the selling stockholder
of shares of common stock under this prospectus. However, we may receive proceeds of up to $4,713,220.68 from our sale of Purchase Shares,
if any, to Lincoln Park under the Purchase Agreement, from time to time in our discretion after the date the registration statement of
which this prospectus is a part is declared effective and the other conditions in the Purchase Agreement have been satisfied.
Lincoln
Park may sell the shares of our common stock described in this prospectus in a number of different ways and at varying prices. The price
that Lincoln Park will pay for the shares to be resold pursuant to this prospectus will depend upon the timing of sales and will fluctuate
based on the trading price of our common stock. Lincoln Park is an “underwriter” within the meaning of Section 2(a)(11) of
the Securities Act of 1933, as amended (the “Securities Act”).
The
purchase price for the Purchase Shares will be based upon formulas set forth in the Purchase Agreement and described in this prospectus
depending on the type of purchase notice we submit to Lincoln Park from time to time. We will pay the expenses incurred in registering
the shares of our common stock, including legal and accounting fees. See “Plan of Distribution” beginning on page 22 for
more information about how Lincoln Park may sell the shares of common stock being registered pursuant to this prospectus.
Our
common stock and warrants are listed on the Nasdaq Capital Market LLC (“Nasdaq”) under the symbols “CING” and
“CINGW,” respectively. The last reported sale price of our common stock on Nasdaq on September 24, 2024 was $5.01 per share.
The last reported sale price of our warrants on Nasdaq on September 24, 2024 was $0.0643 per warrant.
We
are an “emerging growth company” under applicable Securities and Exchange Commission rules and will be subject to reduced
public company reporting requirements.
On
August 9, 2024, we effected a 1-for-12 reverse stock split pursuant to which every 12 shares of our issued and outstanding common stock
were reclassified as one share of common stock (the “2024 Reverse Stock Split”). The 2024 Reverse Stock Split had no impact
on the par value of our common stock or the authorized number of shares of our common stock. Unless otherwise indicated, all share and
per share information in this prospectus is adjusted to reflect the 2024 Reverse Stock Split. However, our annual report on Form 10-K
for the year ended December 31, 2023, filed on April 1, 2024, and all other documents incorporated by reference into this prospectus
that were filed prior to August 9, 2024, do not give effect to the 2024 Reverse Stock Split.
Investing
in our securities is highly speculative and involves a high degree of risk. See “Risk Factors” beginning on page 7 of this
prospectus and in the documents incorporated by reference into this prospectus for a discussion of information that should be considered
in connection with an investment in our securities.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed
upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.
The
date of this prospectus is , 2024.
TABLE
OF CONTENTS
EXPLANATORY NOTE
This Amendment No. 2 is being filed solely to update the list of filings which are incorporated by reference into
this Registration Statement on Form S-1.
ABOUT
THIS PROSPECTUS
This
prospectus forms part of a registration statement that we filed with the Securities and Exchange Commission, or SEC, and that includes
exhibits that provide more detail of the matters discussed in this prospectus. You should read this prospectus and the related exhibits
filed with the SEC, together with the additional information described under the headings “Where You Can Find More Information”
and “Incorporation of Certain Information by Reference” before making your investment decision.
You
should rely only on the information provided in this prospectus or in a prospectus supplement or any free writing prospectuses or amendments
thereto. Neither we, nor the selling stockholder, have authorized anyone else to provide you with different information. If anyone provides
you with different or inconsistent information, you should not rely on it. You should assume that the information in this prospectus
is accurate only as of the date hereof. Our business, financial condition, results of operations and prospects may have changed since
that date.
Neither
we, nor the selling stockholder, are offering to sell or seeking offers to purchase these securities in any jurisdiction where the offer
or sale is not permitted. We have not done anything that would permit this offering or possession or distribution of this prospectus
in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who
come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the securities
as to distribution of the prospectus outside of the United States.
PROSPECTUS
SUMMARY
This
summary highlights information contained elsewhere in this prospectus and does not contain all of the information that you should consider
before making your investment decision. Before investing in our securities, you should carefully read this entire prospectus and the
documents incorporated by reference herein, including the “Risk Factors” section in this prospectus and under similar captions
in the documents incorporated by reference into this prospectus. If any of the risks materialize, our business, financial condition,
operating results, and prospects could be materially and adversely affected. In that event, the price of our securities could decline,
and you could lose part or all of your investment. Unless we state otherwise or the context otherwise requires, the terms “we,”
“us,” “our,” “our business,” “the Company” and “Cingulate” refer to and similar
references refer: (1) on or following the consummation of the Reorganization Merger (as defined below), including our initial public
offering, to Cingulate Inc. and its consolidated subsidiaries, including Cingulate Therapeutics LLC, or CTx, and (2) prior to the consummation
of the Reorganization Merger, including our initial public offering, to CTx and its consolidated subsidiaries.
Overview
We
are a biopharmaceutical company using our proprietary Precision Timed ReleaseTM (“PTRTM”) drug delivery platform technology
to build and advance a pipeline of next-generation pharmaceutical products designed to improve the lives of patients suffering from frequently
diagnosed conditions characterized by burdensome daily dosing regimens and suboptimal treatment outcomes. With an initial focus on the
treatment of Attention Deficit/Hyperactivity Disorder (“ADHD”) and anxiety, we are identifying and evaluating additional
therapeutic areas where our PTR technology may be employed to develop future product candidates. Our PTR platform incorporates a proprietary
Erosion Barrier Layer (“EBL”) designed to allow for the release of drug substance at specific, pre-defined time intervals,
unlocking the potential for once-daily, multi-dose tablets.
We
are targeting the ADHD treatment market, with an estimated US market size of over $23 billion as of November 2023, of which $18.6 billion
is attributable to stimulants. Stimulants are the most commonly prescribed class of medications for ADHD and account for approximately
88% of all ADHD medication prescriptions in the United States. By contrast, non-stimulant medications are typically employed only in
the second-line or adjunctive therapy setting and accounting for approximately 12% of all ADHD medication prescriptions. Extended-release,
or long-acting, dosage forms of stimulant medications are most frequently deployed as the first-line treatment for ADHD and constitute
approximately $16 billion of the overall ADHD market spend and accounting for 54% of all stimulant prescriptions. Most of these extended-release
dosage forms are approved for once-daily dosing in the morning and were designed to eliminate the need for re-dosing during the day.
However, with the current ‘once-daily’ extended-release dosage forms, most patients still receive a second or “booster”
dose for administration later in the day (typically in the early afternoon) to achieve active-day coverage and suffer from a multitude
of unwanted side effects as a result. We believe there is a significant, unmet need within the current treatment paradigm for true once-daily
ADHD stimulant medications with a duration that provides entire active-day coverage combined with an improved side effect profile to
better serve the numerous unmet needs of patients.
Our
two proprietary, first-line stimulant medications: CTx-1301 (dexmethylphenidate) and CTx-1302 (dextroamphetamine), are being developed
for the treatment of ADHD across all three patient segments: children (ages 6 -12), adolescents (ages 13-17), and adults (ages 18+).
Both CTx-1301 and CTx-1302 are designed to address the key shortcomings of currently approved stimulant therapies by: providing an immediate
onset of action (within 30 minutes); offering entire ‘active-day’ duration; eliminating the need for ‘booster/recovery’
doses of additional stimulant medications; minimizing or eliminating the rebound/crash symptoms associated with early medication ‘wear-off;’
and providing favorable tolerability with a controlled descent of drug blood levels. Furthermore, by eliminating the ‘booster’
dose used by up to 60% of ADHD patients in conjunction with their primary medication, we believe our product candidates will provide
important societal and economic benefits: reducing the abuse and diversion associated with short-acting stimulant medications; allowing
physicians to prescribe one medication versus two; allowing patients to pay for one medication versus two; and allowing payers to reimburse
one medication versus two.
The
Lincoln Park Transaction
On
April 24, 2023, we entered into the Purchase Agreement with Lincoln Park, pursuant to which, subject to the terms and conditions set
forth therein, we may sell to Lincoln Park up to an aggregate of $12.0 million of our common stock from time to time over the term of
the Purchase Agreement (of which an aggregate of $7,286,779.32 of shares of common stock have already been issued and sold to Lincoln
Park as of the date of this prospectus). Pursuant to the Purchase Agreement we issued 1,535 shares of common stock to Lincoln Park as
a fee for making its irrevocable commitment to purchase our common stock under the Purchase Agreement (the “Commitment Shares”).
On
April 24, 2023, we entered into a registration rights agreement with Lincoln Park, which we refer to in this prospectus as the Registration
Rights Agreement.
On
April 26, 2023, May 17, 2024 and August 19, 2024, pursuant to the terms of the Purchase Agreement and the Registration Rights Agreement,
we filed registration statement (the “Prior Registration Statements”) on Form S-1 (Registration Nos. 333-271455, 333-279515
and 333-281628) with the SEC to register up to 1,185,417 shares of common stock that have subsequently been issued and sold by us to
Lincoln Park, consisting of (i) 1,183,882 shares of common stock that we issued and sold to Lincoln Park as Purchase Shares, during the
period from the Commencement Date (as defined below) through the date of this prospectus, for aggregate gross proceeds of $7,286,779.32,
and (ii) 1,535 shares Commitment Shares that we issued to Lincoln Park on April 24, 2023 in consideration for Lincoln Park’s commitment
to purchase shares of common stock at our direction under the Purchase Agreement.
The
purpose of this registration statement on Form S-1 is to register an additional 1,500,000 Purchase Shares for resale by Lincoln Park,
pursuant to the terms of the Purchase Agreement and the Registration Rights Agreement
Under
the applicable rules of Nasdaq, on June 15, 2023, we obtained shareholder approval to issue to Lincoln Park, pursuant to the Purchase
Agreement, shares of our common stock, including the Commitment Shares, which exceed 9,443 shares, which was equal to 19.99% of the shares
of our common stock outstanding immediately prior to the execution of the Purchase Agreement.
Sales
of common stock by the Company pursuant to the Purchase Agreement, if any, are subject to certain limitations set forth in the Purchase
Agreement, and may occur from time to time, at the Company’s sole discretion, over the 36-month period commencing on the date that
the conditions to Lincoln Park’s purchase obligation set forth in the Purchase Agreement are satisfied, including that the registration
statement that includes this prospectus is declared effective by the SEC and a final prospectus relating thereto is filed with the SEC
(the date on which all of such conditions were satisfied, which occurred on May 2, 2023, the “Commencement Date”). From and
after the Commencement Date, we may, from time to time and at our sole discretion for a period of 36-months, on any business day that
we select, direct Lincoln Park to purchase up to 125 shares of our common stock, which amount may be increased depending on the market
price of our common stock at the time of sale, subject to a maximum commitment of $500,000 per purchase, which we refer to in this prospectus
as “Regular Purchases.”
In
addition to Regular Purchases, provided that we have directed Lincoln Park to purchase the maximum amount of shares that we are then
able to sell to Lincoln Park in a Regular Purchase, we may, in our sole discretion, also direct Lincoln Park to purchase additional shares
of common stock in “accelerated purchases,” and “additional accelerated purchases” as set forth in the Purchase
Agreement, provided that all shares of common stock subject to all prior Regular Purchases, accelerated purchases and additional accelerated
purchases (as applicable) that we have effected under the Purchase Agreement have been received by Lincoln Park before we deliver notice
to Lincoln Park for the applicable accelerated purchase or additional accelerated purchase in accordance with the Purchase Agreement.
We
will control the timing and amount of any sales of our common stock to Lincoln Park. The purchase price of the shares of our common stock
that may be sold to Lincoln Park in Regular Purchases, accelerated purchases, and additional accelerated purchases under the Purchase
Agreement will be based on the market price of our common stock immediately preceding the time of sale as computed under the Purchase
Agreement. The purchase price per share will be equitably adjusted as provided in the Purchase Agreement for any reorganization, recapitalization,
non-cash dividend, stock split, or other similar transaction as set forth in the Purchase Agreement. We may at any time in our sole discretion
terminate the Purchase Agreement without fee, penalty or cost upon one business day notice. In the event of bankruptcy proceedings by
or against us that are not discharged within 90 days, the Purchase Agreement will automatically terminate without action of any party.
No termination of the Purchase Agreement will be effective during the pendency of any Regular Purchase, accelerated purchase or additional
accelerated purchase that has not then fully settled in accordance with the Purchase Agreement.
There
are no restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages in the Purchase
Agreement or Registration Rights Agreement, except the Company is prohibited (with certain specified exceptions set forth in the Purchase
Agreement) from effecting or entering into an agreement to effect an “equity line of credit” or other continuous offering
or similar offering in which the Company may issue and sell common stock, from time to time over a certain period of time, at future
determined prices based on the market prices of the common stock at the time of each such issuance and sale. Lincoln Park has represented
to us that at no time prior to the time of execution of the Purchase Agreement has Lincoln Park or its agents, representatives or affiliates
engaged in or effected, in any manner whatsoever, directly or indirectly, any short sale (as such term is defined in Rule 200 of Regulation
SHO under the Exchange Act) of our common stock or any hedging transaction, which establishes a net short position with respect to our
common stock. Lincoln Park agreed that during the term of the Purchase Agreement, it, its agents, representatives or affiliates will
not enter into or effect, directly or indirectly, any of the foregoing transactions.
As
of the date of this prospectus we have (i) issued and sold to Lincoln Park 1,183,882 shares of common stock as Purchase Shares, for
aggregate gross proceeds of $7,286,779.32, and (ii) issued to Lincoln Park 1,535 Commitment Shares on April 24, 2023 in
consideration for Lincoln Park’s commitment to purchase shares of common stock at our direction under the Purchase Agreement.
The purpose of this registration statement on Form S-1 is to register an additional 1,500,000 Purchase Shares for resale by Lincoln
Park, pursuant to the terms of the Purchase Agreement and the Registration Rights Agreement. Although the Purchase Agreement
provides that we may sell up to $12.0 million of shares of our common stock to Lincoln Park (of which an aggregate of $7,286,779.32
of shares of common stock have already been issued and sold to Lincoln Park as of the date of this prospectus), only 1,500,000
additional Purchase Shares that we may issue to Lincoln Park as Purchase Shares from and after the date of this prospectus, if and
when we elect to sell such Purchase Shares to Lincoln Park under the Purchase Agreement, are being registered under the Securities
Act for resale by Lincoln Park under the registration statement that includes this prospectus. Depending on the market prices of our
common stock at the time we elect to issue and sell shares of our common stock to Lincoln Park under the Purchase Agreement, we may
need to register for resale under the Securities Act additional shares of our common stock in order to receive aggregate gross
proceeds equal to the $4,713,220.68 remaining available to us under the Purchase Agreement.
As
of September 24, 2024, there were 3,044,165 shares of common stock issued and outstanding, of which 2,937,688 shares of common stock
are held by non-affiliates of our company. If all of the 1,500,000 Purchase Shares that may be offered and resold by Lincoln Park under
this prospectus were also issued and outstanding as of August 16, 2024, such 1,500,000 Purchase Shares would represent approximately
33% of the total number of shares of our common stock outstanding, and approximately 33.8% of the total number of outstanding shares
of our common stock held by non-affiliates of our company, in each case as September 24, 2024. The number of shares of our common stock
ultimately offered for resale by Lincoln Park is dependent upon the number of shares of our common stock we ultimately decide to sell
to Lincoln Park under the Purchase Agreement. If we elect to issue and sell to Lincoln Park under the Purchase Agreement more than the
additional 1,500,000 Purchase Shares being registered for resale by Lincoln Park under this prospectus, which we have the right, but
not the obligation, to do, we must first register for resale under the Securities Act any such additional shares of our common stock,
which could cause additional substantial dilution to our stockholders.
On
June 15, 2023, we obtained shareholder approval to issue to Lincoln Park, pursuant to the Purchase Agreement, shares of our common stock,
including the Commitment Shares, which exceed 9,443 shares, which was equal to 19.99% of the shares of our common stock outstanding immediately
prior to the execution of the Purchase Agreement.
The
Purchase Agreement prohibits us from directing Lincoln Park to purchase any shares of our common stock if those shares of our common
stock, when aggregated with all other shares of our common stock then beneficially owned by Lincoln Park and its affiliates, would result
in Lincoln Park having beneficial ownership, at any single point in time, of more than 4.99% of the then total outstanding shares of
our common stock, as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and
Rule 13d-3 thereunder, which limitation we refer to as the Beneficial Ownership Cap.
Issuances
of our common stock to Lincoln Park under the Purchase Agreement will not affect the rights or privileges of our existing stockholders,
except that the economic and voting interests of each of our existing stockholders will be diluted as a result of any such issuance.
Although the number of shares of our common stock that our existing stockholders own will not decrease, the shares of our common stock
owned by our existing stockholders will represent a smaller percentage of our total outstanding shares of our common stock after any
such issuance of shares of our common stock to Lincoln Park under the Purchase Agreement. There are substantial risks to our stockholders
as a result of the sale and issuance of common stock to Lincoln Park under the Purchase Agreement. See “Risk Factors.”
We
effected a 1-for-20 reverse stock split on November 30, 2023 (the “2023 Reverse Stock Split”), pursuant to which every 20
shares of our issued and outstanding common stock were reclassified as one share of common stock. We effected a 1-for-12 reverse stock
split on August 9, 2024 (the “2024 Reverse Stock Split” and together with the 2023 Reverse Stock Split, the “Reverse
Stock Splits”), pursuant to which every 12 shares of our issued and outstanding common stock were reclassified as one share of
common stock. The Reverse Stock Splits had no impact on the par value of our common stock or the authorized number of shares of our common
stock. Unless otherwise indicated, all share and per share information in this prospectus is adjusted to reflect the Reverse Stock Splits.
Our
Organizational Structure
Cingulate
Inc. is a Delaware corporation that was formed to serve as a holding company. In connection with our initial public offering, we effected
certain organizational transactions. On September 29, 2021, Cingulate acquired Cingulate Therapeutics LLC, or CTx, through the merger
of a wholly-owned acquisition subsidiary of Cingulate with and into CTx (the “Reorganization Merger”). As a result of the
Reorganization Merger, CTx became a wholly-owned subsidiary of Cingulate. Unless otherwise stated or the context otherwise requires,
all information in this prospectus reflects the consummation of the Reorganization Merger.
Corporate
Information
Our
primary executive offices are located at 1901 West 47th Place, Kansas City, Kansas 66205 and our telephone number is (913)
942-2300. Our website address is www.cingulate.com. The information contained on, or that can be accessed through, our website
is not part of this prospectus and should not be considered as part of this prospectus or in deciding whether to purchase our securities.
Cingulate,
PTR, Cingulate Therapeutics, Enfoqis, Enfoqus, Trodesca, Ivoqus, Taylerza, Tymprezi, Accomplish, Mastery and our logo are some of our
trademarks used in this prospectus. This prospectus also includes trademarks, tradenames and service marks that are the property of other
organizations. Solely for convenience, our trademarks and tradenames referred to in this prospectus may appear without the ® and
™ symbols, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under
applicable law, our rights or the right of the applicable licensor to these trademarks and tradenames.
Implications
of Being an Emerging Growth Company
As
a company with less than $1.235 billion in revenue during our most recently completed fiscal year, we qualify as an “emerging growth
company” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage
of relief from certain reporting requirements and other burdens that are otherwise applicable generally to public companies. These provisions
include:
|
● |
reduced
obligations with respect to financial data, including presenting only two years of audited financial statements and only two years
of selected financial data in this prospectus; |
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● |
an
exception from compliance with the auditor attestation requirement of Section 404 of the Sarbanes-Oxley Act of 2002, as amended,
or the Sarbanes-Oxley Act; |
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● |
reduced
disclosure about our executive compensation arrangements in our periodic reports, proxy statements and registration statements; and |
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● |
exemptions
from the requirements of holding non-binding advisory votes on executive compensation or golden parachute arrangements. |
We
may take advantage of exemptions for up to five years or such earlier time that we are no longer an emerging growth company. Accordingly,
the information contained herein may be different than the information you receive from other public companies in which you hold stock.
We would cease to be an emerging growth company upon the earliest to occur of: (1) the last day of the fiscal year in which we have more
than $1.235 billion in annual gross revenue, (2) December 31, 2026, (3) the date we are deemed to be a “large accelerated filer”
as defined in the Securities Exchange Act of 1934, as amended, or the Exchange Act, and (4) the date on which we have during the previous
three-year period issued more than $1.0 billion in non-convertible debt securities.
The
JOBS Act also permits us, as an emerging growth company, to take advantage of an extended transition period to comply with the new or
revised accounting standards applicable to public companies and thereby allow us to delay the adoption of those standards until those
standards would apply to private companies. We have irrevocably elected to avail ourselves of this exemption and therefore, we will not
be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies.
THE
OFFERING
Shares
of our common stock offered by the selling stockholder |
|
Up
to 1,500,000 Purchase Shares that we may issue and sell to Lincoln Park from time to time under the Purchase Agreement from and after
the commencement. |
|
|
|
Selling
stockholder |
|
Lincoln
Park Capital Fund, LLC. See “Selling Stockholder” beginning on page 18 of this prospectus. |
|
|
|
Common
stock outstanding prior to this offering
|
|
3,044,165
shares. |
Common
stock outstanding immediately after this offering |
|
4,544,165
shares, assuming the sale of 1,500,000 shares. The actual number of shares issued will vary depending on the sales prices in this
offering. |
|
|
|
Use
of Proceeds |
|
We
will receive no proceeds from the sale of shares of our common stock by Lincoln Park pursuant to this prospectus. We may receive
up to $4,713,220.68 aggregate gross proceeds under the Purchase Agreement from any sales of shares of our common stock we make to
Lincoln Park pursuant to the Purchase Agreement after the commencement, assuming that we sell the full amount of our common stock
remaining available to us that we have the right, but not the obligation to sell to Lincoln Park under the Purchase Agreement. Any
proceeds that we receive from sales of shares of our common stock to Lincoln Park under the Purchase Agreement will be used for continued
research and development and commercialization activities of CTx-1301, and for working capital, capital expenditures and general
corporate purposes, including investing further in research and development efforts. See “Use of Proceeds.” |
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|
|
Nasdaq
Capital Markets Symbols |
|
Our
common stock and warrants are listed on Nasdaq under the symbols “CING” and “CINGW,” respectively. |
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Risk
Factors |
|
Investment
in our securities involves a high degree of risk and could result in a loss of your entire investment. See “Risk Factors”
beginning on page 7, and the other information included and incorporated by reference in this prospectus for a discussion of the
factors you should consider carefully before deciding to invest in our securities. |
RISK
FACTORS
An
investment in our securities involves a high degree of risk. Before deciding whether to purchase our securities, including the shares
of common stock offered by this prospectus, you should carefully consider the risks and uncertainties described under “Risk Factors”
in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, any subsequent Quarterly Report on Form 10-Q and our other
filings with the SEC, all of which are incorporated by reference herein. If any of these risks actually occur, our business, financial
condition and results of operations could be materially and adversely affected and we may not be able to achieve our goals, the value
of our securities could decline, and you could lose some or all of your investment. Additional risks not presently known to us or that
we currently believe are immaterial may also significantly impair our business operations. If any of these risks occur, our business,
results of operations or financial condition and prospects could be harmed. In that event, the market price of our common stock, and
you could lose all or part of your investment.
It
is not possible to predict the actual number of shares of common stock we may sell to Lincoln Park under the Purchase Agreement, or the
actual gross proceeds resulting from those sales.
On
April 24, 2023, we entered into the Purchase Agreement with Lincoln Park, pursuant to which Lincoln Park has committed to purchase up
to $12.0 million shares of our common stock (of which an aggregate of $7,286,779.32 of shares of common stock have already been issued
and sold to Lincoln Park as of the date of this prospectus), subject to certain limitations and conditions set forth in the Purchase
Agreement, at our direction in our sole discretion from time to time during the period from the Commencement Date through May 2, 2026,
unless the Purchase Agreement is terminated prior to such date. We may only receive additional proceeds of up to $4,713,220.68 from our
sale of Purchase Shares pursuant to the Purchase Agreement.
Because
the purchase price per share to be paid by Lincoln Park for the shares of common stock that we may elect to sell to Lincoln Park under
the Purchase Agreement, if any, will fluctuate based on the market prices of our common stock at the time we elect to sell shares to
Lincoln Park pursuant to the Purchase Agreement, if any, it is not possible for us to predict, as of the date of this prospectus and
prior to any such sales, the number of shares of common stock that we will sell to Lincoln Park under the Purchase Agreement, the purchase
price per share that Lincoln Park will pay for shares purchased from us under the Purchase Agreement, or the aggregate gross proceeds
that we will receive from those purchases by Lincoln Park under the Purchase Agreement.
Lincoln
Park may sell the shares of our common stock described in this prospectus in a number of different ways and at varying prices. The number
of shares of our common stock ultimately offered for sale by Lincoln Park is dependent upon the number of shares of common stock, if
any, we ultimately sell to Lincoln Park under the Purchase Agreement.
The
terms of the Purchase Agreement limit the amount of shares of common stock we may issue to Lincoln Park, which may limit our ability
to utilize the arrangement to enhance our cash resources.
The
Purchase Agreement includes restrictions on our ability to sell shares of common stock to Lincoln Park, including, subject to specified
limitations, if a sale would cause Lincoln Park and its affiliates to exceed the Beneficial Ownership Cap. Accordingly, we cannot guarantee
that we will be able to sell all 1,500,000 Purchase Shares in this offering. If we cannot sell the full amount of the shares of common
stock remaining available to us that Lincoln Park has committed to purchase because of these limitations, we may be required to utilize
more costly and time-consuming means of accessing the capital markets, which could materially adversely affect our liquidity and cash
position. If we choose to sell more shares of common stock than are offered under this prospectus, we must first register for resale
under the Securities Act such additional shares of common stock.
Investors
who buy shares at different times will likely pay different prices.
Pursuant
to the Purchase Agreement, we will have discretion, subject to market demand, to vary the timing, prices, and numbers of shares sold
to Lincoln Park. If and when we do elect to sell shares of our common stock to Lincoln Park pursuant to the Purchase Agreement, after
Lincoln Park has acquired such shares, Lincoln Park may resell all, some or none of such shares at any time or from time to time in its
discretion and at different prices. As a result, investors who purchase shares from Lincoln Park in this offering at different times
will likely pay different prices for those shares, and so may experience different levels of dilution and in some cases substantial dilution
and different outcomes in their investment results. Investors may experience a decline in the value of the shares they purchase from
Lincoln Park in this offering as a result of future sales made by us to Lincoln Park at prices lower than the prices such investors paid
for their shares in this offering.
The
sale or issuance of our common stock to Lincoln Park may cause dilution and the sale of the shares of common stock by Lincoln Park that
it acquires pursuant to the Purchase Agreement, or the perception that such sales may occur, could cause the price of our common stock
to decrease.
On
April 24, 2023, we entered into the Purchase Agreement with Lincoln Park, pursuant to which Lincoln Park has committed to purchase up
to $12.0 million shares of our common stock (of which an aggregate of $7,286,779.32 of shares of common stock have already been issued
and sold to Lincoln Park as of the date of this prospectus), subject to certain limitations and conditions set forth in the Purchase
Agreement, at our direction in our sole discretion from time to time during the period from the Commencement Date through May 2, 2026,
unless the Purchase Agreement is terminated prior to such date. We may only receive additional proceeds of up to $4,713,220.68 from our
sale of Purchase Shares pursuant to the Purchase Agreement. The shares of our common stock that may be issued under the Purchase Agreement
may be sold by us to Lincoln Park at our sole discretion from time to time over a 36-month period commencing after the satisfaction of
certain conditions set forth in the Purchase Agreement. The purchase price for the shares that we may sell to Lincoln Park under the
Purchase Agreement will fluctuate based on the trading price of our common stock. Depending on market liquidity at the time, sales of
such shares may cause the trading price of our common stock to decrease. We generally have the right to control the timing and amount
of any future sales of our shares to Lincoln Park. Additional sales of our common stock, if any, to Lincoln Park will depend upon market
conditions and other factors to be determined by us. We may ultimately decide to sell to Lincoln Park all, some or none of the additional
shares of our common stock that may be available for us to sell pursuant to the Purchase Agreement. If and when we do sell shares to
Lincoln Park, after Lincoln Park has acquired the shares, Lincoln Park may resell all, some or none of those shares at any time or from
time to time in its discretion. Therefore, sales to Lincoln Park by us could result in substantial dilution to the interests of other
holders of our common stock. Additionally, the sale of a substantial number of shares of our common stock to Lincoln Park, or the anticipation
of such sales, could make it more difficult for us to sell equity or equity-related securities in the future at a time and at a price
that we might otherwise wish to effect sales. Under the applicable rules of Nasdaq, on June 15, 2023, we obtained shareholder approval
to issue to Lincoln Park, pursuant to the Purchase Agreement, shares of our common stock, including the Commitment Shares, which exceed
9,443 shares, which was equal to 19.99% of the shares of our common stock outstanding immediately prior to the execution of the Purchase
Agreement.
Our
management will have broad discretion over the use of the net proceeds from our sale of shares of common stock to Lincoln Park, you may
not agree with how we use the proceeds and the proceeds may not be invested successfully.
Our
management will have broad discretion as to the use of the net proceeds from our sale of shares of common stock to Lincoln Park, and
we could use them for purposes other than those contemplated at the time of commencement of this offering. Accordingly, you will be relying
on the judgment of our management with regard to the use of those net proceeds, and you will not have the opportunity, as part of your
investment decision, to assess whether the proceeds are being used appropriately. It is possible that, pending their use, we may invest
those net proceeds in a way that does not yield a favorable, or any, return for us. The failure of our management to use such funds effectively
could have a material adverse effect on our business, financial condition, operating results and cash flows.
CAUTIONARY
NOTE REGARDING FORWARD LOOKING STATEMENTS
This
prospectus and any documents we incorporate by reference contain forward-looking statements that involve substantial risks and uncertainties.
In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,”
“expect,” “plan,” “anticipate,” “could,” “intend,” “target,”
“project,” “estimate,” “believe,” “estimate,” “predict,” “potential”
or “continue” or the negative of these terms or other similar expressions intended to identify statements about the future.
These statements speak only as of the date of this prospectus and involve known and unknown risks, uncertainties and other important
factors that may cause our actual results, performance or achievements to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements. We have based these forward-looking statements largely on our
current expectations and projections about future events and financial trends that we believe may affect our business, financial condition
and results of operations. These forward-looking statements include, without limitation, statements about the following:
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our
ability to maintain compliance with the continued listing requirements of Nasdaq; |
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our
lack of operating history and need for additional capital; |
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our
plans to develop and commercialize our product candidates; |
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the
timing of our planned clinical trials for CTx-1301, CTx-1302, and CTx-2103; |
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the
timing of our New Drug Application (“NDA”) submissions for CTx-1301, CTx-1302, and CTx-2103; |
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the
timing of and our ability to obtain and maintain regulatory approvals for CTx-1301, CTx-1302, CTx-2103, or any other future product
candidate; |
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the
clinical utility of our product candidates; |
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our
commercialization, marketing and manufacturing capabilities and strategy; |
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our
ability to identify strategic partnerships; |
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our
expected use of cash;
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our
competitive position and projections relating to our competitors or our industry; |
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our
ability to identify, recruit, and retain key personnel; |
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the
impact of laws and regulations; |
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our
expectations regarding the time during which we will be an emerging growth company under the Jumpstart Our Business Startups Act
of 2012 (the “JOBS Act”); |
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our
plans to identify additional product candidates with significant commercial potential that are consistent with our commercial objectives;
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our
estimates regarding future revenue and expenses. |
Because
forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some
of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. The events
and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially
from those projected in the forward-looking statements. You should refer to the “Risk Factors” section of this prospectus
and the documents we incorporate by reference for a discussion of important factors that may cause our actual results to differ materially
from those expressed or implied by our forward-looking statements. Moreover, we operate in an evolving environment. New risk factors
and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.
As a result of these factors, we cannot assure you that the forward-looking statements in this prospectus and the documents we incorporate
by reference will prove to be accurate. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking
statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. You should,
however, review the factors and risks and other information we describe in the reports we will file from time to time with the SEC after
the date of this prospectus.
You
should read this prospectus and the documents that we incorporate by reference in this prospectus and have filed as exhibits to the registration
statement of which this prospectus is a part completely and with the understanding that our actual future results may be materially different
from what we expect. We qualify all of our forward-looking statements by these cautionary statements.
THE
LINCOLN PARK TRANSACTION
General
On
April 24, 2023, we entered into the Purchase Agreement with Lincoln Park, pursuant to which Lincoln Park has committed to purchase up
to $12.0 million shares of our common stock (of which an aggregate of $7,286,779.32 of shares of common stock have already been issued
and sold to Lincoln Park as of the date of this prospectus), subject to certain limitations and conditions set forth in the Purchase
Agreement, at our direction in our sole discretion from time to time during the period from the Commencement Date through May 2, 2026,
unless the Purchase Agreement is terminated prior to such date. Pursuant to the Purchase Agreement we issued 1,535 Commitment Shares
to Lincoln Park as a fee for making its irrevocable commitment to purchase our common stock under the Purchase Agreement. We may only
receive additional proceeds of up to $4,713,220.68 from our sale of Purchase Shares pursuant to the Purchase Agreement.
On
April 24, 2023, we entered into the Registration Rights Agreement, pursuant to which we filed with the SEC the registration statement
that includes this prospectus to register for resale under the Securities Act, the shares of our common stock that have been or may be
issued to Lincoln Park under the Purchase Agreement.
On
April 26, 2023, May 17, 2024 and August 19, 2024, pursuant to the terms of the Purchase Agreement and the Registration Rights Agreement,
we filed the Prior Registration Statements with the SEC to register up to 1,185,417 shares of common stock that have subsequently been
issued and sold by us to Lincoln Park, consisting of (i) 1,183,882 shares of common stock that we issued and sold to Lincoln Park as
Purchase Shares, during the period from the Commencement Date through the date of this prospectus, for aggregate gross proceeds of $7,286,779.32,
and (ii) 1,535 shares Commitment Shares that we issued to Lincoln Park on April 24, 2023 in consideration for Lincoln Park’s commitment
to purchase shares of common stock at our direction under the Purchase Agreement.
The
purpose of this registration statement on Form S-1 is to register an additional 1,500,000 shares of common stock for resale by Lincoln
Park, pursuant to the terms of the Purchase Agreement and the Registration Rights Agreement.
We
do not have the right to commence any sales of our common stock to Lincoln Park under the Purchase Agreement until all of the conditions
set forth in the Purchase Agreement have been satisfied, including that the SEC has declared effective the registration statement that
includes this prospectus registering the shares of our common stock that have been and may be issued and sold to Lincoln Park under the
Purchase Agreement, which we refer to in this prospectus as the commencement, or Commencement Date. From and after the commencement,
we may, from time to time and at our sole discretion for a period of 36-months, on any business day that we select, direct Lincoln Park
to purchase up to 125 shares of our common stock, which amount may be increased depending on the market price of our common stock at
the time of sale, subject to a maximum commitment of $500,000 per purchase, which we refer to in this prospectus as “Regular Purchases.”
Such maximum commitment of $500,000 is subject to adjustment in certain circumstances after a reorganization, recapitalization, non-cash
dividend, stock split or other similar transaction. In addition, at our discretion, Lincoln Park has committed to purchase other “accelerated
amounts” and/or “additional accelerated amounts” under certain circumstances. See “Purchase of Shares of our
Common Stock Under the Purchase Agreement – Regular Purchases” below.
We
will control the timing and amount of any sales of our common stock to Lincoln Park. The purchase price of the shares of our common stock
that may be sold to Lincoln Park in Regular Purchases, accelerated purchases, and additional accelerated purchases under the Purchase
Agreement will be based on the market price of our common stock immediately preceding the time of sale as computed under the Purchase
Agreement. The purchase price per share will be equitably adjusted as provided in the Purchase Agreement for any reorganization, recapitalization,
non-cash dividend, stock split, or other similar transaction as set forth in the Purchase Agreement. We may at any time in our sole discretion
terminate the Purchase Agreement without fee, penalty or cost upon one business day notice. Actual sales of shares of common stock by
the Company to Lincoln Park under the Purchase Agreement will depend on a variety of factors to be determined by the Company from time
to time, including, among others, market conditions, the trading price of the common stock and determinations by the Company as to the
appropriate sources of funding for the Company and its operations.
As
of the date of this prospectus we have (i) issued and sold to Lincoln Park 1,183,882 shares of common stock as Purchase Shares, for aggregate
gross proceeds of $7,286,779.32, and (ii) issued to Lincoln Park 1,535 Commitment Shares on April 24, 2023 in consideration for Lincoln
Park’s commitment to purchase shares of common stock at our direction under the Purchase Agreement. The purpose of this registration
statement on Form S-1 is to register an additional 1,500,000 Purchase Shares for resale by Lincoln Park, pursuant to the terms of the
Purchase Agreement and the Registration Rights Agreement. Although the Purchase Agreement provides that we may sell up to $12.0 million
of shares of our common stock to Lincoln Park (of which an aggregate of $7,286,779.32 of shares of common stock have already been issued
and sold to Lincoln Park as of the date of this prospectus), only 1,500,000 additional Purchase Shares that we may issue to Lincoln Park
as Purchase Shares from and after the date of this prospectus, if and when we elect to sell such Purchase Shares to Lincoln Park under
the Purchase Agreement, are being registered under the Securities Act for resale by Lincoln Park under the registration statement that
includes this prospectus. Depending on the market prices of our common stock at the time we elect to issue and sell shares of our common
stock to Lincoln Park under the Purchase Agreement, we may need to register for resale under the Securities Act additional shares of
our common stock in order to receive aggregate gross proceeds equal to the $4,713,220.68 remaining available to us under the Purchase
Agreement.
As
of September 24, 2024, there were 3,044,165 shares of common stock issued and outstanding, of which 2,937,688 shares of common stock
are held by non-affiliates of our company. If all of the 1,500,000 Purchase Shares that may be offered and resold by Lincoln Park under
this prospectus were also issued and outstanding as of May 14, 2024, such 1,500,000 Purchase Shares would represent approximately 33%
of the total number of shares of our common stock outstanding, and approximately 33.8% of the total number of outstanding shares of our
common stock held by non-affiliates of our company, in each case as of September 24, 2024. The number of shares of our common stock ultimately
offered for resale by Lincoln Park is dependent upon the number of shares of our common stock we ultimately decide to sell to Lincoln
Park under the Purchase Agreement. If we elect to issue and sell to Lincoln Park under the Purchase Agreement more than the additional
1,500,000 Purchase Shares being registered for resale by Lincoln Park under this prospectus, which we have the right, but not the obligation,
to do, we must first register for resale under the Securities Act any such additional shares of our common stock, which could cause additional
substantial dilution to our stockholders.
On
June 15, 2023, we obtained shareholder approval to issue to Lincoln Park, pursuant to the Purchase Agreement, shares of our common stock,
including the Commitment Shares, which exceed 9,443 shares, which was equal to 19.99% of the shares of our common stock outstanding immediately
prior to the execution of the Purchase Agreement.
The
Purchase Agreement prohibits us from directing Lincoln Park to purchase any shares of our common stock if those shares of our common
stock, when aggregated with all other shares of our common stock then beneficially owned by Lincoln Park and its affiliates, would result
in Lincoln Park having beneficial ownership, at any single point in time, of more than 4.99% of the then total outstanding shares of
our common stock, as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and
Rule 13d-3 thereunder, which limitation we refer to as the Beneficial Ownership Cap.
Issuances
of our common stock to Lincoln Park under the Purchase Agreement will not affect the rights or privileges of our existing stockholders,
except that the economic and voting interests of each of our existing stockholders will be diluted as a result of any such issuance.
Although the number of shares of our common stock that our existing stockholders own will not decrease, the shares of our common stock
owned by our existing stockholders will represent a smaller percentage of our total outstanding shares of our common stock after any
such issuance of shares of our common stock to Lincoln Park under the Purchase Agreement. There are substantial risks to our stockholders
as a result of the sale and issuance of common stock to Lincoln Park under the Purchase Agreement. See “Risk Factors.”
Purchase
of Shares of our Common Stock Under the Purchase Agreement
Regular
Purchases
From
and after the Commencement Date, on any business day selected by the Company (and provided all shares of common stock subject to all
prior Regular Purchases have been properly delivered to Lincoln Park in accordance with the Purchase Agreement), the Company may, by
written notice delivered by us to Lincoln Park, direct Lincoln Park to purchase up to 125 shares of our common stock on such business
day in a Regular Purchase, provided, however, that the maximum number of shares we may sell to Lincoln Park in a Regular Purchase may
be increased to up to (i) 167 shares of our common stock, provided that the closing sale price of our common stock is not below $240.00
on the purchase date, (ii) 250 shares of our common stock, provided that the closing sale price of our common stock is not below $360.00
on the purchase date and (iii) 334 shares of our common stock, provided that the closing sale price of our common stock is not below
$480.00 on the purchase date (such share amount limitation, the “Regular Purchase Share Limit”). All share and dollar amounts
in the previous sentence are subject to adjustment for any reorganization, recapitalization, non-cash dividend, stock split or other
similar transaction, provided that if, after giving effect to the full proportionate adjustment to the Regular Purchase Share Limit,
the adjusted Regular Purchase Share Limit then in effect would preclude us from selling to Lincoln Park at least $150,000 worth of shares
of our common stock in a Regular Purchase (calculated by multiplying (X) the number of Purchase Shares equal to the adjusted Regular
Purchase Share Limit, by (Y) the purchase price per Purchase Share covered by such purchase on such date), the Regular Purchase Share
Limit for such purchase shall not be fully adjusted proportionally. In such case, the Regular Purchase Share Limit for such purchase
will be adjusted to equal the maximum number of Purchase Shares, which taking into account the applicable per share purchase price therefor
calculated in accordance with the Purchase Agreement, would enable us to sell to Lincoln Park, an amount of common stock equal to, or
as closely approximating without exceeding, $150,000 (the “Alternate Adjusted Purchase Share Limit”). All share and dollar
amounts disclosed in this paragraph relating to the Regular Purchase have been adjusted to reflect the Reverse Stock Splits.
Lincoln
Park’s maximum commitment in any single Regular Purchase, other than any Regular Purchase with respect to which an Alternate Adjusted
Purchase Share Limit shall apply, may not exceed $500,000.
The
purchase price per share for each such Regular Purchase will be equal to the lower of:
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lowest sale price for our common stock on the purchase date for such shares of our common stock; and |
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arithmetic average of the three lowest closing sale prices for our common stock during the 10 consecutive business days ending on
the business day immediately preceding the purchase date of such shares of our common stock. |
Accelerated
Purchases
In
addition to Regular Purchases described above, we may also direct Lincoln Park, on any Purchase Date for a Regular Purchase on which
we have properly submitted a Regular Purchase notice directing Lincoln Park to purchase the maximum number of shares of our common stock
that we are then permitted to include in a single Regular Purchase notice (and provided all shares of common stock subject to all prior
Regular Purchases, Accelerated Purchases and Additional Accelerated Purchases effected prior to such Purchase Date have been properly
delivered to Lincoln Park in accordance with the Purchase Agreement), to purchase an additional amount of our common stock, which we
refer to as an Accelerated Purchase, on the next business day following such Purchase Date for such corresponding Regular Purchase, which
we refer to as the Accelerated Purchase Date, not to exceed the lesser of:
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30%
of the aggregate number of shares of our common stock traded during all or, if certain trading volume or market price thresholds
specified in the Purchase Agreement are crossed on the applicable Accelerated Purchase Date, the portion of the normal trading hours
on the applicable Accelerated Purchase Date prior to such time that any one of such thresholds is crossed, which period of time on
the applicable Accelerated Purchase Date we refer to as the Accelerated Purchase Measurement Period; and |
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300%
of the number of purchase shares purchased pursuant to the corresponding Regular Purchase. |
The
purchase price per share for the shares subject to an Accelerated Purchase will be equal to 95% of the lower of:
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the
volume weighted average price of our common stock during the Accelerated Purchase Measurement Period on the applicable Accelerated
Purchase Date; and |
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closing sale price of our common stock on the applicable Accelerated Purchase Date. |
Additional
Accelerated Purchases
We
may also direct Lincoln Park, by written notice delivered to Lincoln Park, not later than 1:00 p.m., Eastern Time, on the same Accelerated
Purchase Date on which an Accelerated Purchase Measurement Period for an Accelerated Purchase has ended prior to such time (and provided
all shares of common stock subject to all prior Regular Purchases, Accelerated Purchases and Additional Accelerated Purchases, including
those prior Accelerated Purchases and Additional Accelerated Purchases effected on the same Accelerated Purchase Date as the applicable
Additional Accelerated Purchase have been properly delivered to Lincoln Park in accordance with the Purchase Agreement prior to such
time), to purchase an additional amount of our common stock on such same Accelerated Purchase Date, which we refer to as an Additional
Accelerated Purchase, of up to the lesser of:
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of the aggregate number of shares of our common stock traded during the portion of the normal trading hours on the applicable Accelerated
Purchase Date determined in accordance with the Purchase Agreement, which period of time on the applicable Accelerated Purchase Date
we refer to as the Additional Accelerated Purchase Measurement Period; and |
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300%
of the number of purchase shares purchased pursuant to the Regular Purchase corresponding to the Accelerated Purchase effected on
such same Accelerated Purchase Date. |
The
purchase price per share for the shares subject to an Additional Accelerated Purchase will be equal to 95% of the lower of:
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the
volume weighted average price of our common stock during the applicable Additional Accelerated Purchase Measurement Period for such
Additional Accelerated Purchase; and |
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closing sale price of our common stock on the applicable same Accelerated Purchase Date. |
We
may, in our sole discretion, submit multiple Additional Accelerated Purchase notices to Lincoln Park prior to 1:00 p.m., Eastern Time,
on a single Accelerated Purchase Date, again provided all shares of common stock subject to all prior Regular Purchases, Accelerated
Purchases and Additional Accelerated Purchases, including those prior Accelerated Purchases and Additional Accelerated Purchases effected
on the same Accelerated Purchase Date as the applicable Additional Accelerated Purchase have been properly delivered to Lincoln Park
in accordance with the Purchase Agreement prior to such time.
In
the case of Regular Purchases, Accelerated Purchases and Additional Accelerated Purchases, the purchase price per share will be equitably
adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction occurring
during the business days used to compute the purchase price.
Other
than as described above, there are no trading volume requirements or restrictions under the Purchase Agreement, and we will control the
timing and amount of any sales of our common stock to Lincoln Park.
Suspension
Events
Suspension
events under the Purchase Agreement include the following:
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the
effectiveness of the registration statement of which this prospectus forms a part lapses for any reason (including, without limitation,
the issuance of a stop order), or any required prospectus supplement and accompanying prospectus are unavailable for the resale by
Lincoln Park of our common stock offered hereby, and such lapse or unavailability continues for a period of 10 consecutive business
days or for more than an aggregate of 30 business days in any 365-day period; |
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suspension
by our principal market of our common stock from trading for a period of one business day; |
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the
delisting of our common stock from Nasdaq, our principal market, provided our common stock is not immediately thereafter trading
on the New York Stock Exchange, Nasdaq, the Nasdaq Global Market, the Nasdaq Global Select Market, the NYSE American, the NYSE Arca,
or the OTCQX Best Market or the OTCQB Venture Market operated by OTC Markets Group Inc. (or any nationally recognized successor thereto); |
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the
failure of our transfer agent to issue to Lincoln Park shares of our common stock within two business days after the applicable date
on which Lincoln Park is entitled to receive such shares of our common stock; |
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any
breach of the representations or warranties or covenants contained in the Purchase Agreement or Registration Rights Agreement that
has or could have a material adverse effect on us and, in the case of a breach of a covenant that is reasonably curable, that is
not cured within five business days; |
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any
voluntary or involuntary participation or threatened participation in insolvency or bankruptcy proceedings by or against us; or |
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at any time we are not eligible to transfer our common stock electronically. |
Following
the Commencement Date, Lincoln Park does not have the right to terminate the Purchase Agreement upon any of the suspension events set
forth above, although the Purchase Agreement would automatically terminate in the event of any voluntary or involuntary participation
or threatened participation in insolvency or bankruptcy proceedings by or against us that are not discharged within 90 days. So long
as a suspension event has occurred and is continuing, or if any event which, after notice and/or lapse of time, would reasonably be expected
to become a suspension event has occurred and is continuing, we may not direct Lincoln Park to purchase any shares of our common stock
under the Purchase Agreement.
Our
Termination Rights
We
have the unconditional right, at any time, for any reason and without any payment or liability to us, to terminate the Purchase Agreement
upon one business day’s prior written notice to Lincoln Park. In the event of any voluntary or involuntary bankruptcy proceedings
by or against the Company that are not discharged within 90 days, the Purchase Agreement would automatically terminate without any action
of the Company or Lincoln Park. No termination of the Purchase Agreement will be effective during the pendency of any Regular Purchase,
Accelerated Purchase or Additional Accelerated Purchase that has not then fully settled in accordance with the Purchase Agreement.
No
Short-Selling or Hedging by Lincoln Park
Lincoln
Park has represented to us that at no time prior to the time of execution of the Purchase Agreement has Lincoln Park or its agents, representatives
or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly, any short sale (as such term is defined in Rule
200 of Regulation SHO under the Exchange Act) of our common stock or any hedging transaction, which establishes a net short position
with respect to our common stock. Lincoln Park agreed that during the term of the Purchase Agreement, it, its agents, representatives
or affiliates will not enter into or effect, directly or indirectly, any of the foregoing transactions.
Prohibitions
on Certain Transactions
There
are no restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages in the Purchase
Agreement or Registration Rights Agreement, except the Company is prohibited (with certain specified exceptions set forth in the Purchase
Agreement) from effecting or entering into an agreement to effect an “equity line of credit” or other continuous offering
or similar offering in which the Company may issue and sell common stock, from time to time over a certain period of time, at future
determined prices based on the market prices of the common stock at the time of each such issuance and sale.
Effect
of Performance of the Purchase Agreement on Our Stockholders
All
of the shares of our common stock being registered for resale hereunder which have been or may be issued or sold by us to Lincoln Park
under the Purchase Agreement are expected to be freely tradable. It is anticipated that shares registered in this offering will be sold
from time to time over a period of up to 36-months commencing on the date that the registration statement including this prospectus becomes
effective. The sale by Lincoln Park of a significant amount of shares of our common stock registered in this offering at any given time
could cause the market price of our common stock to decline and to be highly volatile. Sales of our common stock to Lincoln Park, if
any, will depend upon market conditions and other factors to be determined by us. We may ultimately decide to sell to Lincoln Park all,
some or none of the additional shares of our common stock that may be available for us to sell pursuant to the Purchase Agreement. If
and when we do sell additional shares of our common stock to Lincoln Park, after Lincoln Park has acquired the shares of our common stock,
Lincoln Park may resell all, some or none of those shares of our common stock at any time or from time to time in its discretion. Therefore,
sales to Lincoln Park by us under the Purchase Agreement may result in substantial dilution to the interests of other holders of our
common stock. In addition, if we sell a substantial number of shares of our common stock to Lincoln Park under the Purchase Agreement,
or if investors expect that we will do so, the actual sales of shares of our common stock or the mere existence of our arrangement with
Lincoln Park may make it more difficult for us to sell equity or equity-related securities in the future at a time and at a price that
we might otherwise wish to effect such sales. However, we have the right to control the timing and amount of any additional sales of
our common stock to Lincoln Park and the Purchase Agreement may be terminated by us at any time at our discretion without any cost to
us.
Pursuant
to the terms of the Purchase Agreement, from and after commencement, we have the right, but not the obligation, from time to time to
direct Lincoln Park to purchase up to $12.0 million of our common stock (of which an aggregate of $7,286,779.32 of shares of common stock
have already been issued and sold to Lincoln Park as of the date of this prospectus, and we may only receive proceeds of up to $4,713,220.68
from our sale of Purchase Shares). Depending on the price per share at which we sell our common stock to Lincoln Park pursuant to the
Purchase Agreement, we may need to sell to Lincoln Park under the Purchase Agreement more shares of our common stock than are being offered
under this prospectus in order to receive aggregate gross proceeds equal to the $4,713,220.68 remaining available to us under the Purchase
Agreement. If we choose to do so, we must first register for resale under the Securities Act such additional shares of our common stock,
which could cause additional substantial dilution to our stockholders. The number of shares of our common stock ultimately offered for
resale by Lincoln Park under this prospectus is dependent upon the number of shares of our common stock we direct Lincoln Park to purchase
under the Purchase Agreement.
The
following table sets forth the amount of gross proceeds we would receive from Lincoln Park from our sale of common stock to Lincoln Park
under the Purchase Agreement at varying purchase prices:
Assumed
Average
Purchase Price
Per Share | | |
Number of Registered
Shares of
our
Common Stock to be Issued if Full
Purchase(1) | | |
Percentage of Outstanding
Shares of our Common
Stock After Giving Effect to
the Issuance to
Lincoln Park(2) | | |
Gross Proceeds from the
Sale of Shares of our
Common Stock to Lincoln
Park Under the
Purchase Agreement(1) | |
$ | 1.00 | | |
| 1,500,000 | | |
| 33.0 | % | |
$ | 1,500,000 | |
$ | 2.00 | | |
| 1,500,000 | | |
| 33.0 | % | |
$ | 3,000,000 | |
$ | 5.01 | (3) | |
| 940,763 | | |
| 23.6 | % | |
$ | 4,713,220.68 | |
$ | 10.00 | | |
| 471,322 | | |
| 13.4 | % | |
$ | 4,713,220.68 | |
(1) |
Although
the Purchase Agreement provides that we may sell up to $12.0 million of shares of our common stock to Lincoln Park (of which an aggregate
of $7,286,779.32 of shares of common stock have already been issued and sold to Lincoln Park as of the date of this prospectus),
only 1,500,000 Purchase Shares that we may issue to Lincoln Park as Purchase Shares from and after the date of this additional prospectus,
if and when we elect to sell such Purchase Shares to Lincoln under the Purchase Agreement, are being registered under the Securities
Act for resale by Lincoln Park under the registration statement that includes this prospectus, which may or may not cover all the
additional shares of our common stock we ultimately sell to Lincoln Park under the Purchase Agreement, depending on the purchase
price per share of our common stock. We may only receive additional proceeds of up to $4,713,220.68 from our sale of Purchase Shares
pursuant to the Purchase Agreement. On June 15, 2023, we obtained shareholder approval to issue to Lincoln Park, pursuant to the
Purchase Agreement, shares of our common stock, including the Commitment Shares, which exceed 9,443 shares, which was equal to 19.99%
of the shares of our common stock outstanding immediately prior to the execution of the Purchase Agreement. The number of shares
issued in this column does not give effect to the Beneficial Ownership Cap. |
(2) |
The
denominator is based on 3,044,165 shares of our common stock outstanding as of September 24, 2024, adjusted to include the number
of shares of our common stock set forth in the adjacent column which we would have sold to Lincoln Park, assuming the purchase price
in the adjacent column. The numerator is based on the number of shares of our common stock issuable under the Purchase Agreement
at the corresponding assumed purchase price set forth in the adjacent column, without giving effect to the Beneficial Ownership Cap. |
(3) |
The
closing sale price per share of our common stock on September 24, 2024. |
USE
OF PROCEEDS
This
prospectus relates to shares of our common stock that may be offered and sold from time to time by Lincoln Park. We will receive no proceeds
from the sale of shares of common stock by Lincoln Park in this offering. We may receive up to $4,713,220.68 in gross proceeds under
the Purchase Agreement from any sales we make to Lincoln Park pursuant to the Purchase Agreement after the date of this prospectus. We
estimate that the net proceeds to us from the sale of our common stock to Lincoln Park pursuant to the Purchase Agreement would be up
to approximately $4.57 million assuming that we sell the full amount of our common stock remaining available to us that we have the right,
but not the obligation, to sell to Lincoln Park under the Purchase Agreement, and after other estimated fees and expenses. See “Plan
of Distribution” elsewhere in this prospectus for more information.
Any
proceeds from the selling stockholder that we receive under the Purchase Agreement are expected to be used for continued research and
development and commercialization activities of CTx-1301, and for working capital, capital expenditures and general corporate purposes,
including investing further in research and development efforts. The amounts and timing of these expenditures will depend on a number
of factors, such as the timing and progress of our research and development efforts, regulatory actions affecting our product candidates
and our business, technological advances and the competitive environment for our product candidates. As we are unable to predict the
timing or amount of potential issuances of all of the additional shares issuable to the Purchase Agreement, we cannot specify with certainty
all of the particular uses for the net proceeds that we will have from the sale of such additional shares. Accordingly, our management
will have broad discretion in the application of the net proceeds. We may also use a portion of the net proceeds to acquire or invest
in complementary businesses, technologies, product candidates or other intellectual property, although we have no present commitments
or agreements to do so. We may use the proceeds for purposes that are not contemplated at the time of this offering. Pending use of the
net proceeds as described above, we expect to invest the net proceeds in short- and intermediate-term, interest-bearing obligations,
investment-grade instruments, certificates of deposit or direct or guaranteed obligations of the U.S. government. It is possible that
no additional shares will be issued under the Purchase Agreement.
DILUTION
The
sale of common stock to Lincoln Park pursuant to the Purchase Agreement will have a dilutive impact on our stockholders. In addition,
the lower the price of our common stock is at the time we exercise our right to sell shares to Lincoln Park, the more shares of our common
stock we will issue to raise our desired amount of proceeds from the sale, and the greater the dilution to our existing shareholders.
The
price that Lincoln Park will pay for our common stock to be resold pursuant to this prospectus will depend upon the timing of sales and
will fluctuate based on the trading price of common stock.
As
of June 30, 2024, we had a net tangible book value of $3.1 million, or $3.95 per share of common stock. Our net tangible book value per
share represents total tangible assets less total liabilities, divided by the number of shares of our common stock outstanding as of
June 30, 2024.
After
giving effect to the sale of 902,300 shares of common stock pursuant to our At The Market Offering Agreement with H.C. Wainwright &
Co., LLC, for net proceeds of $5,804,393.40 after June 30, 2024 (the “ATM Sales”) and the sale of 1,092,337 shares of common
stock pursuant to our Purchase Agreement for net proceeds of $6,081,849.05 after June 30, 2024 (the “Purchase Agreement Sales”
and together with the ATM Sales, the “Sales”), our pro forma tangible net book value as of June 30, 2024 would have been
approximately $14.9 million, or approximately $5.39 per share of common stock, an increase of approximately $1.44 per share of common
stock.
After
giving effect to the sale of 1,500,000 Purchase Shares to Lincoln Park pursuant to the Purchase Agreement at an assumed price of $5.01
per share, the closing price of our common stock on Nasdaq on September 24, 2024, without giving effect to the Beneficial Ownership Cap
under the Purchase Agreement, our pro forma adjusted net tangible book value as of June 30, 2024, would have been approximately $19.6
million, or $4.57 per share. This represents an immediate decrease in pro forma net tangible book value of $0.82 per share to existing
stockholders and an immediate dilution of $0.44 per share to new investors.
The
following table illustrates this dilution on a per share basis:
Assumed public offering price per share | |
| | | |
$ | 5.01 | |
Historical net tangible book value per share of common stock as of June 30, 2024 | |
$ | 3.95 | | |
| | |
Increase in net tangible book value attributable to the Sales | |
$ | 1.44 | | |
| | |
Pro forma net tangible book value after giving effect to the Sales | |
$ | 5.39 | | |
| | |
Increase in pro forma net tangible book value per share attributable to this offering | |
$ | (0.82 | ) | |
| | |
Pro forma adjusted net tangible book value per share after this offering | |
| | | |
$ | 4.57 | |
Dilution per share to new investors purchasing shares in this offering | |
| | | |
$ | 0.44 | |
The
table and discussion above are based on 780,762 shares of our common stock outstanding as June 30, 2024 (2,775,399) shares of common
stock outstanding on a pro forma basis after giving effect to the ATM Sales), and excludes, as of such date, the following:
● |
89,161
shares of our common stock issuable upon exercise of outstanding stock options issued under the 2021 Plan with a weighted average
exercise price of $45.61 per share; |
|
|
● |
35,144
shares of our common stock that are available for future issuance under the 2021 Plan; |
|
|
● |
833,689
shares of common stock issuable upon the exercise of outstanding warrants with a weighted average exercise price of $48.36 per share;
and |
|
|
● |
16,500
shares of common stock issuable upon the exercise of outstanding pre-funded with a weighted average exercise price of $0.0012 per
share. |
SELLING
STOCKHOLDER
This
prospectus relates to the possible resale by the selling stockholder, Lincoln Park, of additional shares of our common stock that may
be issued to Lincoln Park pursuant to the Securities Purchase Agreement and the Purchase Agreement. We are filing the registration statement
of which this prospectus is a part pursuant to the provisions of the Registration Rights Agreements, which we entered into with Lincoln
Park on April 24, 2023 concurrently with our execution of the Purchase Agreement, in which we agreed to provide certain registration
rights with respect to sales by Lincoln Park of the shares of our common stock that may be issued to Lincoln Park under the Purchase
Agreement.
Lincoln
Park, as the selling stockholder, may, from time to time, offer and sell pursuant to this prospectus up to 1,500,000 Purchase Shares
that we have issued or may issue to Lincoln Park. The selling stockholder may sell some, all or none of the shares of common stock. We
do not know how long the selling stockholder will hold the shares of our common stock before selling them, and we currently have no agreements,
arrangements or understandings with the selling stockholder regarding the sale of any of the shares of common stock. See “Plan
of Distribution.”
The
table below sets forth, to our knowledge, information concerning the beneficial ownership of shares of our common stock by the selling
stockholder as of September 24, 2024. The percentages of shares owned before and after the offering are based on 3,044,165 shares of
common stock outstanding as of September 24, 2024. The information in the table below with respect to the selling stockholder has been
obtained from the selling stockholder.
Beneficial
ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to shares. Unless
otherwise indicated below, to our knowledge, all persons named in the table have sole voting and investment power with respect to their
shares of common stock. The inclusion of any shares in this table does not constitute an admission of beneficial ownership for the person
named below.
Throughout
this prospectus, when we refer to the shares of common stock being offered for resale by the selling stockholder through this prospectus,
we are referring to the shares of common stock that have been and may be issued and sold by us to Lincoln Park pursuant to the Purchase
Agreement, unless otherwise indicated.
Name of Selling Stockholder | |
Number of Shares of Common Stock Owned Prior to Offering(2) | | |
Maximum Number of Shares of Common Stock to be Offered Pursuant to this Prospectus(3) | | |
Number of Shares of Common Stock Owned After Offering(4) | |
| |
Number | | |
Percent | | |
| | |
Number | | |
Percent | |
Lincoln Park Capital Fund, LLC(1) | |
| 0 | | |
| - | | |
| 1,500,000 | | |
| 0 | | |
| - | |
(1)
Josh Scheinfeld and Jonathan Cope, the Managing Members of Lincoln Park Capital, LLC, the manager of Lincoln Park, are deemed to be beneficial
owners of all of the shares of Class A common stock owned directly by Lincoln Park. Messrs. Cope and Scheinfeld have shared voting and
investment power over the shares of common stock being offered under the registration statement filed with the SEC in connection with
the transactions contemplated under the Purchase Agreement and Registration Rights Agreement. Neither Lincoln Park Capital, LLC nor Lincoln
Park is a licensed broker dealer or an affiliate of a licensed broker dealer.
(2)
We have excluded from the number of shares of our common stock beneficially owned prior to the offering all of the 1,500,000 Purchase
Shares that we may issue and sell to Lincoln Park pursuant to the Purchase Agreement from and after commencement that are being registered
for resale under the registration statement that includes this prospectus, because the issuance and sale of such shares to Lincoln Park
under the Purchase Agreement is solely at our discretion and is subject to certain conditions, the satisfaction of all of which are outside
of Lincoln Park’s control, including the registration statement that includes this prospectus becoming and remaining effective
under the Securities Act. Furthermore, under the terms of the Purchase Agreement, issuances and sales of shares of our common stock to
Lincoln Park under the Purchase Agreement are subject to certain limitations on the amounts we may sell to Lincoln Park at any time,
including the Beneficial Ownership Cap.
(3)
Although the Purchase Agreement provides that we may sell up to $12.0 million of our common shares to Lincoln Park (of which an aggregate
of $7,286,779.32 of shares of common stock have already been issued and sold to Lincoln Park as of the date of this prospectus), only
1,500,000 Purchase Shares that we may issue to Lincoln Park as Purchase Shares from and after the date of this prospectus, if and when
we elect to sell such Purchase Shares to Lincoln under the Purchase Agreement, are being registered under the Securities Act for resale
by Lincoln Park under the registration statement that includes this prospectus.
(4)
Assumes the sale of all shares of our common stock registered for resale by the selling stockholder pursuant to the registration statement
that includes this prospectus, although the selling stockholder is under no obligation known to us to sell any shares of common stock
at any particular time.
DESCRIPTION
OF SECURITIES
The
following description summarizes the most important terms of our securities. Because it is only a summary, it does not contain all the
information that may be important to you. For a complete description, you should refer to our amended and restated certificate of incorporation
and restated bylaws, copies of which are filed as exhibits to the registration statement of which this prospectus forms a part, which
are incorporated by reference herein.
Authorized
Capitalization
We
have 250,000,000 shares of capital stock authorized under our amended and restated certificate of incorporation, consisting of 240,000,000
shares of common stock with a par value of $0.0001 per share and 10,000,000 shares of preferred stock with a par value of $0.0001 per
share.
As
of September 24, 2024, there were 3,044,165 shares of common stock outstanding, and no shares of preferred stock outstanding.
Common
Stock
Holders
of our common stock are entitled to such dividends as may be declared by our board of directors out of funds legally available for such
purpose. The shares of common stock are neither redeemable nor convertible. Holders of common stock have no preemptive or subscription
rights to purchase any of our securities.
Each
holder of our common stock is entitled to one vote for each such share outstanding in the holder’s name. No holder of common stock
is entitled to cumulate votes in voting for directors.
In
the event of our liquidation, dissolution or winding up, the holders of our common stock are entitled to receive a pro rata share of
our assets, which are legally available for distribution, after payments of all debts and other liabilities. All of the outstanding shares
of our common stock are fully paid and non-assessable.
Preferred
Stock
Our
board of directors has the authority, without further action by our stockholders, to issue up to 10,000,000 shares of preferred stock
in one or more classes or series and to fix the designations, rights, preferences, privileges and restrictions thereof, without further
vote or action by the stockholders. These rights, preferences and privileges could include dividend rights, conversion rights, voting
rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting, or the designation of,
such class or series, any or all of which may be greater than the rights of common stock. The issuance of our preferred stock could adversely
affect the voting power of holders of common stock and the likelihood that such holders will receive dividend payments and payments upon
our liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change in
control of our company or other corporate action. No shares of preferred stock are outstanding, and we have no present plan to issue
any shares of preferred stock.
Anti-Takeover
Effects of Delaware law and Our Certificate of Incorporation and Bylaws
The
provisions of Delaware law, our amended and restated certificate of incorporation and our amended and restated bylaws described below
may have the effect of delaying, deferring or discouraging another party from acquiring control of us.
Section
203 of the Delaware General Corporation Law
We
are subject to Section 203 of the Delaware General Corporation Law, which prohibits a Delaware corporation from engaging in any business
combination with any interested stockholder for a period of three years after the date that such stockholder became an interested stockholder,
with the following exceptions:
● |
before such
date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the
stockholder becoming an interested stockholder; |
● |
upon completion
of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least
85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes of determining the
voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (i) by persons
who are directors and also officers and (ii) employee stock plans in which employee participants do not have the right to determine
confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or |
|
|
● |
on or after such date,
the business combination is approved by the board of directors and authorized at an annual or special meeting of the stockholders,
and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the
interested stockholder. |
In
general, Section 203 defines business combination to include the following:
● |
any merger
or consolidation involving the corporation and the interested stockholder; |
|
|
● |
any sale, transfer, pledge
or other disposition of 10% or more of the assets of the corporation involving the interested stockholder; |
|
|
● |
subject to certain exceptions,
any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; |
|
|
● |
any transaction involving
the corporation that has the effect of increasing the proportionate share of the stock or any class or series of the corporation
beneficially owned by the interested stockholder; or |
|
|
● |
the receipt by the interested
stockholder of the benefit of any loss, advances, guarantees, pledges or other financial benefits by or through the corporation. |
In
general, Section 203 defines an “interested stockholder” as an entity or person who, together with the person’s affiliates
and associates, beneficially owns, or within three years prior to the time of determination of interested stockholder status did own,
15% or more of the outstanding voting stock of the corporation.
Certificate
of Incorporation and Bylaws
Our
amended and restated certificate of incorporation and amended and restated bylaws provide for:
● |
classifying
our board of directors into three classes; |
|
|
● |
authorizing the issuance
of “blank check” preferred stock, the terms of which may be established and shares of which may be issued without stockholder
approval; |
|
|
● |
limiting the removal of
directors by the stockholders; |
|
|
● |
requiring a supermajority
vote of stockholders to amend our bylaws or certain provisions our certificate of incorporation; |
|
|
● |
prohibiting stockholder
action by written consent, thereby requiring all stockholder actions to be taken at a meeting of our stockholders; |
|
|
● |
eliminating the ability
of stockholders to call a special meeting of stockholders; |
|
|
● |
establishing advance notice
requirements for nominations for election to the board of directors or for proposing matters that can be acted upon at stockholder
meetings; and |
|
|
● |
establishing Delaware as
the exclusive jurisdiction for certain stockholder litigation against us. |
Potential
Effects of Authorized but Unissued Stock
Pursuant
to our amended and restated certificate of incorporation, we have shares of common stock and preferred stock available for future issuance
without stockholder approval. We may utilize these additional shares for a variety of corporate purposes, including future public offerings
to raise additional capital, to facilitate corporate acquisitions or payment as a dividend on the capital stock.
The
existence of unissued and unreserved common stock and preferred stock may enable our board of directors to issue shares to persons friendly
to current management or to issue preferred stock with terms that could render more difficult or discourage a third-party attempt to
obtain control of us by means of a merger, tender offer, proxy contest or otherwise, thereby protecting the continuity of our management.
In addition, the board of directors has the discretion to determine designations, rights, preferences, privileges and restrictions, including
voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences of each series of preferred stock,
all to the fullest extent permissible under the Delaware General Corporation Law and subject to any limitations set forth in our certificate
of incorporation. The purpose of authorizing the board of directors to issue preferred stock and to determine the rights and preferences
applicable to such preferred stock is to eliminate delays associated with a stockholder vote on specific issuances. The issuance of preferred
stock, while providing desirable flexibility in connection with possible financings, acquisitions and other corporate purposes, could
have the effect of making it more difficult for a third-party to acquire, or could discourage a third-party from acquiring, a majority
of our outstanding voting stock.
Choice
of Forum
Unless
we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and
exclusive forum for any stockholder to bring (i) any derivative action or proceeding brought on behalf of the Company, (ii) any action
asserting a claim of breach of fiduciary duty owed by any director, officer or other employee of the Company or the Company’s stockholders,
(iii) any action asserting a claim against the Company or any director or officer of the Company arising pursuant to, or a claim against
the Company or any director or officer of the Company, with respect to the interpretation or application of any provision of the DGCL,
our certificate of incorporation or bylaws, or (iv) any action asserting a claim governed by the internal affairs doctrine, except for,
in each of the aforementioned actions, any claims to which the Court of Chancery of the State of Delaware determines it lacks jurisdiction.
This provision will not apply to claims arising under the Exchange Act, or for any other federal securities laws which provide for exclusive
federal jurisdiction. However, the exclusive forum provision provides that unless we consent in writing to the selection of an alternative
forum, the federal district courts of the United States of America will be the exclusive forum for the resolution of any complaint asserting
a cause of action arising under the Securities Act. Therefore, this provision could apply to a suit that falls within one or more of
the categories enumerated in the exclusive forum provision and that asserts claims under the Securities Act, inasmuch as Section 22 of
the Securities Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability
created by the Securities Act or the rules and regulations thereunder. There is uncertainty as to whether a court would enforce such
an exclusive forum provision with respect to claims under the Securities Act.
We
note that there is uncertainty as to whether a court would enforce the provision and that investors cannot waive compliance with the
federal securities laws and the rules and regulations thereunder. Although we believe this provision benefits us by providing increased
consistency in the application of Delaware law in the types of lawsuits to which it applies, the provision may have the effect of discouraging
lawsuits against our directors and officers.
Transfer
Agent
The
transfer agent of our common stock is Computershare Trust Company, N.A.
PLAN
OF DISTRIBUTION
The
shares of our common stock offered by this prospectus are being offered by the selling stockholder, Lincoln Park Capital Fund, LLC. The
shares may be sold or distributed from time to time by the selling stockholder directly to one or more purchasers or through brokers,
dealers, or underwriters who may act solely as agents at market prices prevailing at the time of sale, at prices related to the prevailing
market prices, at negotiated prices, or at fixed prices, which may be changed. The sale of our common stock offered by this prospectus
could be effected in one or more of the following methods:
● |
ordinary
brokers’ transactions; |
|
|
● |
transactions
involving cross or block trades; |
|
|
● |
through
brokers, dealers, or underwriters who may act solely as agents; |
|
|
● |
“at
the market” into an existing market for the shares of our common stock; |
|
|
● |
in
other ways not involving market makers or established business markets, including direct sales to purchasers or sales effected through
agents; |
|
|
● |
in
privately negotiated transactions; or |
|
|
● |
any
combination of the foregoing. |
In
order to comply with the securities laws of certain states, if applicable, the shares of our common stock offered by this prospectus
may be sold only through registered or licensed brokers or dealers. In addition, in certain states, the shares of our common stock offered
by this prospectus may not be sold unless they have been registered or qualified for sale in the state or an exemption from the state’s
registration or qualification requirement is available and complied with.
Lincoln
Park is an “underwriter” within the meaning of Section 2(a)(11) of the Securities Act.
Lincoln
Park has informed us that it intends to use an unaffiliated broker-dealer to effectuate all sales, if any, of our common stock that it
has acquired and may in the future acquire from us pursuant to the Purchase Agreement. Such sales will be made at prices and at terms
then prevailing or at prices related to the then current market price. Each such unaffiliated broker-dealer will be an underwriter within
the meaning of Section 2(a)(11) of the Securities Act. Lincoln Park has informed us that each such broker-dealer will receive commissions
from Lincoln Park that will not exceed customary brokerage commissions.
Brokers,
dealers, underwriters or agents participating in the distribution of the shares of our common stock offered by this prospectus may receive
compensation in the form of commissions, discounts, or concessions from the selling stockholder and/or the purchasers, for whom the broker-dealers
may act as agent. The compensation paid to any such particular broker-dealer may be less than or in excess of customary commissions.
Neither we nor Lincoln Park can presently estimate the amount of compensation that any agent will receive from the selling stockholder
or from any purchasers of shares of our common stock sold by Lincoln Park.
We
know of no existing arrangements between Lincoln Park or any other stockholder, broker, dealer, underwriter or agent relating to the
sale or distribution of the shares of our common stock offered by this prospectus.
We
may from time to time file with the SEC one or more supplements to this prospectus or amendments to the registration statement that includes
this prospectus to amend, supplement or update information contained in this prospectus, including, if and when required under the Securities
Act, to disclose certain information relating to a particular sale of shares of our common stock offered by this prospectus by the selling
stockholder, including the names of any brokers, dealers, underwriters or agents participating in the distribution of such shares of
our common stock by the selling stockholder, any compensation paid by Lincoln Park to any such brokers, dealers, underwriters or agents,
and any other required information.
We
will pay the expenses incident to the registration under the Securities Act of the offer and sale of the shares of our common stock included
in this prospectus by Lincoln Park. We estimate that the total expenses for the offering will be approximately $135,000. We have agreed
to indemnify Lincoln Park and certain other persons against certain liabilities in connection with the offering of shares of our common
stock offered by this prospectus, including liabilities arising under the Securities Act or, if such indemnity is unavailable, to contribute
amounts required to be paid in respect of such liabilities. Lincoln Park has agreed to indemnify us against liabilities under the Securities
Act that may arise from certain written information furnished to us by Lincoln Park specifically for use in this prospectus or, if such
indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities.
Lincoln
Park has represented to us that at no time prior to the Purchase Agreement has Lincoln Park or its agents, representatives or affiliates
engaged in or effected, in any manner whatsoever, directly or indirectly, any short sale (as such term is defined in Rule 200 of Regulation
SHO of the Exchange Act) of our common stock or any hedging transaction, which establishes a net short position with respect to our common
stock. Lincoln Park agreed that during the term of the Purchase Agreement, it, its agents, representatives or affiliates will not enter
into or effect, directly or indirectly, any of the foregoing transactions.
We
have advised Lincoln Park that it is required to comply with Regulation M promulgated under the Exchange Act. With certain exceptions,
Regulation M precludes the selling stockholder, any affiliated purchasers, and any broker-dealer or other person who participates in
the distribution from bidding for or purchasing, or attempting to induce any person to bid for or purchase any security which is the
subject of the distribution until the entire distribution is complete. Regulation M also prohibits any bids or purchases made in order
to stabilize the price of a security in connection with the distribution of that security. All of the foregoing may affect the marketability
of the securities offered by this prospectus.
This
offering will terminate on the date that all shares of our common stock offered by this prospectus have been sold by Lincoln Park.
Our
common stock and warrants are listed on Nasdaq under the symbols “CING” and “CINGW,” respectively.
LEGAL
MATTERS
The
validity of the shares of common stock offered by this prospectus will be passed upon for us by Lowenstein Sandler LLP, New York, New
York.
EXPERTS
Our
consolidated financial statements as of December 31, 2023 and 2022, and for each of the years in the two-year period ended December 31,
2023, have been incorporated by reference herein in reliance upon the report of KPMG LLP, independent registered public accounting firm,
incorporated by reference herein, and upon the authority of said firm as experts in accounting and auditing. The audit report covering
the December 31, 2023 and 2022 consolidated financial statements contains an explanatory paragraph that states that our losses and negative
cash flows from operations raise substantial doubt about the entity’s ability to continue as a going concern. The consolidated
financial statements do not include any adjustments that might result from the outcome of that uncertainty.
INCORPORATION
OF CERTAIN INFORMATION BY REFERENCE
The
following documents filed with the SEC are incorporated by reference into this prospectus:
● |
our Annual
Report on Form 10-K for the year ended December 31, 2023, filed on April 1, 2024; |
|
|
● |
our Quarterly Reports on
Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024, filed on May 8, 2024 and August 13, 2024; |
|
|
● |
our
Current Reports on Form 8-K, filed January
29, 2024, February
7, 2024, February
13, 2024, February
26, 2024, March
18, 2024, May
13, 2024, May
28, 2024, June
12, 2024, June
18, 2024, July
1, 2024, July
30, 2024, August
7, 2024, August
19, 2024, August
28, 2024, August
29, 2024, September
3, 2024, September
10, 2024, September
12, 2024, October
4, 2024 and October 7, 2024 (other than any portions deemed furnished and not filed); |
|
|
● |
our Definitive Proxy Statements
on Schedule 14A filed with the SEC on April 26, 2024, June 28, 2024 and July 22, 2024; and |
|
|
● |
the description of our
common stock contained in our Registration Statement on Form 8-A, filed with the SEC on December 3, 2021, including any amendments
thereto or reports filed for the purposes of updating this description, including Exhibit 4.5 to our Annual Report on Form 10-K for
the year ended December 31, 2023, filed with the SEC on April 1, 2024. |
We
also incorporate by reference all documents we file pursuant to Section 13(a), 13(c), 14 or 15 of the Exchange Act (other than any portions
of filings that are furnished rather than filed pursuant to Items 2.02 and 7.01 of a Current Report on Form 8-K) after the date of the
initial registration statement of which this prospectus is a part and prior to effectiveness of such registration statement. All documents
we file in the future pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this prospectus and prior to
the termination of the offering are also incorporated by reference and are an important part of this prospectus.
Any
statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded
for the purposes of this registration statement to the extent that a statement contained herein or in any other subsequently filed document
which also is or deemed to be incorporated by reference herein modifies or supersedes such statement. Any statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part of this registration statement.
WHERE
YOU CAN FIND MORE INFORMATION
This
prospectus is part of a registration statement we filed with the SEC. This prospectus does not contain all of the information set forth
in the registration statement and the exhibits to the registration statement. For further information with respect to us and the securities
we are offering under this prospectus, we refer you to the registration statement and the exhibits and schedules filed as a part of the
registration statement. You should rely only on the information contained in this prospectus or incorporated by reference into this prospectus.
We have not authorized anyone else to provide you with different information. We are not making an offer of these securities in any jurisdiction
where the offer is not permitted. You should assume that the information contained in this prospectus, or any document incorporated by
reference in this prospectus, is accurate only as of the date of those respective documents, regardless of the time of delivery of this
prospectus or any sale of our securities.
We
are subject to the informational requirements of the Exchange Act and in accordance therewith we file annual, quarterly, and other reports,
proxy statements and other information with the Commission under the Exchange Act. Such reports, proxy statements and other information,
including the Registration Statement, and exhibits and schedules thereto, are available to the public through the Commission’s
website at www.sec.gov.
We
make available free of charge on or through our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports
on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934,
as amended, as soon as reasonably practicable after we electronically file such material with or otherwise furnish it to the Commission.
The registration statement and the documents referred to under “Incorporation of Certain Information by Reference”
are also available on our website cingulate.com.
We
have not incorporated by reference into this prospectus the information on our website, and you should not consider it to be a part of
this prospectus.
1,500,000
Shares of Common Stock
PROSPECTUS
,
2024
PART
II
INFORMATION
NOT REQUIRED IN PROSPECTUS
Item
13. Other Expenses of Issuance and Distribution.
The
following table indicates the expenses to be incurred in connection with the offering described in this registration statement, other
than underwriting
discounts and commissions, all of which will be paid by us. All amounts are estimated except the Securities and Exchange Commission registration
fee.
| |
Amount | |
Securities and Exchange Commission registration fee | |
$ | 1,125 | |
Accountants’ fees and expenses | |
| 25,000 | |
Legal fees and expenses | |
| 100,000 | |
Miscellaneous | |
| 3,875 | |
Total expenses | |
$ | 130,000 | |
Item
14. Indemnification of Directors and Officers.
As
permitted by Section 102 of the Delaware General Corporation Law, we have adopted provisions in our amended and restated certificate
of incorporation and bylaws that limit or eliminate the personal liability of our directors for a breach of their fiduciary duty of care
as a director. The duty of care generally requires that, when acting on behalf of the corporation, directors exercise an informed business
judgment based on all material information reasonably available to them. Consequently, a director will not be personally liable to us
or our stockholders for monetary damages for breach of fiduciary duty as a director, except for liability for:
● |
any breach
of the director’s duty of loyalty to us or our stockholders; |
|
|
● |
any act or omission not
in good faith or that involves intentional misconduct or a knowing violation of law; |
|
|
● |
any act related to unlawful
stock repurchases, redemptions or other distributions or payment of dividends; or |
|
|
● |
any transaction from which
the director derived an improper personal benefit. |
These
limitations of liability do not affect the availability of equitable remedies such as injunctive relief or rescission. Our amended and
restated certificate of incorporation also authorizes us to indemnify our officers, directors and other agents to the fullest extent
permitted under Delaware law.
As
permitted by Section 145 of the Delaware General Corporation Law, our bylaws provide that:
● |
we may indemnify
our directors, officers, and employees to the fullest extent permitted by the Delaware General Corporation Law, subject to limited
exceptions; |
|
|
● |
we may advance expenses
to our directors, officers and employees in connection with a legal proceeding to the fullest extent permitted by the Delaware General
Corporation Law, subject to limited exceptions; and |
|
|
● |
the rights provided in our bylaws are not exclusive. |
Our
amended and restated certificate of incorporation, filed as Exhibit 3.1 hereto, and our amended and restated bylaws, filed as Exhibit
3.2 hereto, provide for the indemnification provisions described above and elsewhere herein. We have entered into and intend to continue
to enter into separate indemnification agreements with our directors and elective officers which may be broader than the specific indemnification
provisions contained in the Delaware General Corporation Law. These indemnification agreements generally require us, among other things,
to indemnify our officers and directors against liabilities that may arise by reason of their status or service as directors or officers,
other than liabilities arising from willful misconduct. These indemnification agreements also generally require us to advance any expenses
incurred by the directors or officers as a result of any proceeding against them as to which they could be indemnified. In addition,
we have purchased a policy of directors’ and officers’ liability insurance that insures our directors and officers against
the cost of defense, settlement or payment of a judgment in some circumstances. These indemnification provisions and the indemnification
agreements may be sufficiently broad to permit indemnification of our officers and directors for liabilities, including reimbursement
of expenses incurred, arising under the Securities Act.
Item
15. Recent Sales of Unregistered Securities.
On
July 19, 2021, the Company issued one share of its common stock, par value $0.0001 per share, to Cingulate Therapeutics, LLC for $0.024.
Such issuance was exempt from registration under 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder.
On
September 29, 2021, the Company issued 29,762 shares of its common stock, par value $0.0001 per share, to the former holders of units
of Cingulate Therapeutics LLC in connection with the Reorganization Merger. Such issuances were exempt from registration under 4(a)(2)
of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder.
On
August 9, 2022, Cingulate Therapeutics LLC issued a $5 million promissory note (the “August Note”) to Werth Family Investment
Associates LLC (“WFIA”). Peter J. Werth, a member of the Company’s Board of Directors is the manager of WFIA. Such
issuance was exempt from registration under 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder.
On May 9, 2023, Cingulate Therapeutics LLC amended and restated the August Note to increase the principal amount to $8.0 million (as
so amended and restated, the “Amended and Restated Note”). WFIA had the right during the first five business days of each
calendar quarter to demand payment of all outstanding principal and interest 120 days following notice to Cingulate Therapeutics LLC.
Cingulate Therapeutics LLC was permitted to repay the WFIA Note, in whole or in part, without premium or penalty; provided, that no amount
repaid was permitted to be reborrowed. Such issuance was exempt from registration under 4(a)(2) of the Securities Act of 1933, as amended,
and Regulation D promulgated thereunder.
On
April 24, 2023, the Company completed a private placement to Lincoln Park Capital Fund, LLC (“Lincoln Park”) pursuant to
which it has the right to sell to Lincoln Park up to $12.0 million in shares of common stock, subject to certain limitations, from time
to time over the 36-month period commencing on the date that a registration statement covering the resale of the shares is declared effective
by the SEC (the “LP Purchase Agreement”). The Company issued 1,535 Commitment Shares to Lincoln Park as consideration for
its commitment to purchase shares under the LP Purchase Agreement. In the LP Purchase Agreement, Lincoln Park represented to the Company,
among other things, that it was an “accredited investor” (as such term is defined in Rule 501(a) of Regulation D under the
Securities Act). The securities were and will be sold by the Company under the Purchase Agreement in reliance upon an exemption from
the registration requirements under the Securities Act afforded by Section 4(a)(2) of the Securities Act.
On
August 11, 2023, the Company entered into a Securities Purchase Agreement with Werth Family Investment Associates LLC, and issued, in
a private placement priced at the market under Nasdaq rules, 7,597 shares of the Company’s common stock at a purchase price per
share of $131.64, for aggregate gross proceeds to the Company of approximately $1.0 million, before deducting transaction expenses payable
by the Company (the “Private Placement”). The Private Placement closed on August 11, 2023. Such issuance was exempt from
the registration requirements under the Securities Act afforded by Section 4(a)(2) of the Securities Act.
On
September 8, 2023, the Company and CTx entered into a note conversion agreement with WFIA (the “Note Conversion Agreement”),
pursuant to which WFIA agreed to convert the $5,000,000 under the Amended and Restated Note plus all accrued interest thereon, or $5,812,500,
into pre-funded warrants (“WIFA Pre-Funded Warrants”) to purchase 28,493 shares of common stock, at a conversion price per
Pre-Funded Warrant of $204.00. The Pre-Funded Warrants have no expiration date and are exercisable immediately at an exercise price of
$0..024 per share. Such issuance was exempt from the registration requirements under the Securities Act afforded by Section 4(a)(2) of
the Securities Act.
On
January 25, 2024, Cingulate Inc. and CTx entered into a Note Conversion Agreement (the “January 2024 Note Conversion Agreement”)
with WFIA, pursuant to which WFIA agreed to convert the remaining $3.0 million of principal under the WFIA Note plus all accrued interest
thereon, or $3,287,500, into pre-funded warrants (the “January WFIA Pre-Funded Warrants”) to purchase 57,254 shares of our
common stock, at a conversion price per January WFIA Pre-Funded Warrant of 57.42. The closing price of the common stock on Nasdaq on
January 24, 2024 was $52.20 per share. The January WFIA Pre-Funded Warrants have no expiration date and are exercisable immediately at
an exercise price of $0.0012 per share, to the extent that after giving effect to such exercise, WFIA and its affiliates would beneficially
own, for purposes of Section 13(d) of the Exchange Act, no more than 19.99% of the outstanding shares of our common stock. On March 25,
2024, the Company issued to WFIA an additional pre-funded warrant to purchase 588 shares of common stock as a result of an error in the
interest calculation, on the same form and at the same conversion price as the January WFIA Pre-Funded Warrants. Such issuances were
exempt from the registration requirements under the Securities Act afforded by Section 4(a)(2) of the Securities Act.
On
December 1, 2023, the Company issued 96 shares of common stock at a value of $73.44 per share to a consultant. Such issuance was exempt
from the registration requirements under the Securities Act afforded by Section 4(a)(2) of the Securities Act.
On
February 1, 2024, the Company issued 596 shares of common stock at a value of $40.32 per share to a consultant. Such issuance was exempt
from the registration requirements under the Securities Act afforded by Section 4(a)(2) of the Securities Act.
On
June 10, 2024, the Company issued 11,652 shares of common stock to a consultant at a value of $8.45 per share. Such issuance was exempt
from registration under Section 4(a)(2) under the Securities Act.
On
June 28, 2024, the Company entered into an inducement offer letter agreement (the “Inducement Letter”) with certain holders
(the “Holders”) of certain existing warrants to purchase up to an aggregate of 265,625 shares of its common stock issued
to the Holders on February 6, 2024 (the “Existing Warrants”). Pursuant to the Inducement Letter, the Holders agreed to exercise
for cash its Existing Warrants at a reduced exercise price of $7.02 per share in consideration for the Company’s agreement to issue
in a private placement (i) new series C common stock purchase warrants to purchase an aggregate of 354,167 shares of common stock and
(ii) new series D common stock purchase warrants to purchase an aggregate of 177,084 shares of common stock. Such issuances were exempt
from the registration requirements under the Securities Act afforded by Section 4(a)(2) of the Securities Act.
Item
16. Exhibits and Financial Statement Schedules
4.14 |
|
Form of Placement Agent Warrant |
|
8-K |
|
4.4 |
|
2/7/2024 |
4.15 |
|
Form of March 2024 WFIA Pre-Funded Warrant |
|
10-K |
|
4.16 |
|
4/1/2024 |
4.16 |
|
Form of New Warrant (July 2024 Offering) |
|
8-K |
|
4.1 |
|
7/1/2024 |
4.17 |
|
Form of Placement Agent Warrant (July 2024 Offering) |
|
8-K |
|
4.2 |
|
7/1/2024 |
5.1* |
|
Opinion of Lowenstein Sandler LLP |
|
|
|
|
|
|
10.1# |
|
Patent and Know-How License Agreement, dated August 8, 2018, between BDD Pharma Limited, Cingulate Therapeutics LLC and Drug Delivery International Limited |
|
S-1 |
|
10.2 |
|
9/9/2021 |
10.2# |
|
Master Services Agreement between Cingulate Therapeutics LLC and Societal CDMO, Inc., dated October 24, 2022 |
|
8-K |
|
10.1 |
|
10/25/2022 |
10.3+ |
|
Employment Agreement, dated September 23, 2021, between Cingulate Therapeutics LLC and Shane J. Schaffer |
|
S-1 |
|
10.4 |
|
9/27/2021 |
10.4+ |
|
Employment Agreement, dated September 23, 2021, between Cingulate Therapeutics LLC and Matthew N. Brams |
|
S-1 |
|
10.5 |
|
9/27/2021 |
10.5+ |
|
Employment Agreement, dated September 23, 2021, between Cingulate Therapeutics LLC and Laurie A. Myers |
|
S-1 |
|
10.6 |
|
9/27/2021 |
10.6+ |
|
Employment Agreement, dated September 23, 2021, between Cingulate Therapeutics LLC and Craig S. Gilgallon |
|
S-1 |
|
10.7 |
|
9/27/2021 |
10.7+ |
|
Employment Agreement, dated September 23, 2021, between Cingulate Therapeutics LLC and Louis G. Van Horn |
|
S-1 |
|
10.8 |
|
9/27/2021 |
10.8+ |
|
Employment Agreement, dated September 23, 2021, between Cingulate Therapeutics LLC and Raul R. Silva |
|
S-1 |
|
10.9 |
|
9/27/2021 |
10.9+ |
|
Amendment to Employment Agreement, effective April 1, 2022, between Cingulate Therapeutics LLC and Raul R. Silva |
|
10-Q |
|
10.1 |
|
8/11/2022 |
10.10+ |
|
Amendment to Employment Agreement, effective January 1, 2023, between Cingulate Therapeutics LLC and Raul R. Silva |
|
10-K |
|
10.10 |
|
3/10/2023 |
10.11+ |
|
Form of Indemnification Agreement |
|
S-1 |
|
10.10 |
|
9/9/2021 |
10.12+ |
|
Cingulate Inc. 2021 Omnibus Equity Incentive Plan |
|
S-1 |
|
10.1 |
|
9/27/2021 |
10.13+ |
|
Form of Nonqualified Stock Option Award under 2021 Plan |
|
10-Q |
|
10.1 |
|
5/12/2022 |
10.14+ |
|
Form of Incentive Stock Option Award under 2021 Plan |
|
10-Q |
|
10.2 |
|
5/12/2022 |
10.15+ |
|
Form of Restricted Stock Unit Award under 2021 Plan |
|
S-1 |
|
10.20 |
|
9/27/2021 |
10.16+ |
|
Form of Restricted Stock Award under 2021 Plan |
|
S-1 |
|
10.21 |
|
9/27/2021 |
10.17 |
|
Amended and Restated Promissory Note, dated May 9, 2023, between Cingulate Therapeutics, LLC and Werth Family Investment Associates |
|
8-K |
|
10.1 |
|
5/10/2023 |
10.18 |
|
At The Market Offering Agreement, dated January 3, 2023, by and between Cingulate Inc. and H.C. Wainwright & Co., LLC |
|
S-3 |
|
1.2 |
|
1/3/2023 |
10.19 |
|
Amendment to ATM Agreement, dated May 2, 2023, by and between Cingulate Inc. and H.C. Wainwright & Co., LLC |
|
10-Q |
|
10.5 |
|
5/10/2023 |
10.20 |
|
Joint Commercialization Agreement, dated March 7, 2023, by and between Cingulate Therapeutics, LLC and Indegene, Inc. |
|
10-K |
|
10.19 |
|
3/10/2023 |
10.21 |
|
Purchase Agreement, dated April 24, 2023, by and between Lincoln Park Capital, LLC and Cingulate Inc. |
|
8.K |
|
10.1 |
|
4/25/2023 |
10.22 |
|
Registration Rights Agreement, dated April 24, 2023, by and between Lincoln Park Capital, LLC and Cingulate Inc. |
|
8.K |
|
10.2 |
|
4/25/2023 |
10.23 |
|
Securities Purchase Agreement, dated August 11, 2023, by and between the Company and Werth Family Investment Associates LLC |
|
8-K |
|
10.1 |
|
8/14/2023 |
10.24 |
|
Form of Securities Purchase Agreement |
|
S-1 |
|
10.24 |
|
9/7/2023 |
10.25 |
|
Note Conversion Agreement, dated September 8, 2023, by and between the Company, Cingulate Therapeutics, LLC and Werth Family Investment Associates LLC |
|
8-K |
|
10.1 |
|
9/11/2023 |
10.26+ |
|
Amendment to Employment Agreement, effective January 1, 2024, between Cingulate Therapeutics, LLC and Matthew N. Brams |
|
S-1 |
|
10.26 |
|
1/12/2024 |
10.27+ |
|
Amendment to Employment Agreement, effective December 29, 2023, between Cingulate Therapeutics, LLC and Raul A. Silva |
|
S-1 |
|
10.27 |
|
1/12/2024 |
10.28 |
|
Note Conversion Agreement, dated January 25, 2024, by and between the Company, Cingulate Therapeutics, LLC and Werth Family Investment Associates LLC |
|
8-K |
|
10.1 |
|
1/29/2024 |
10.29+ |
|
Employment Agreement, dated January 25, 2024, between Cingulate Therapeutics LLC, and Jennifer L. Callahan |
|
8-K |
|
10.2 |
|
1/29/2024 |
10.30 |
|
Form of Securities Purchase Agreement |
|
8-K |
|
10.1 |
|
2/07/2024 |
10.31+ |
|
Amendment No.1 to the Cingulate Inc. 2021 Omnibus Equity Incentive Plan |
|
8-K |
|
10.1 |
|
6/12/2024 |
10.32 |
|
Form of Inducement Letter |
|
8-K |
|
10.1 |
|
7/01/2024 |
21.1 |
|
List of Subsidiaries of Cingulate Inc. |
|
10-K |
|
21.1 |
|
4/1/2024 |
23.1* |
|
Consent of Independent Registered Public Accounting Firm |
23.2* |
|
Consent of Lowenstein Sandler LLP (included in Exhibit 5.1) |
24.1* |
|
Power of Attorney (contained in the signature page of this registration statement) |
107* |
|
Filing Fee Table |
†
Annexes, schedules and/or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Registrant hereby undertakes to
furnish supplementally a copy of any of the omitted schedules and exhibits to the SEC on a confidential basis upon request.
* Previously filed
+
Indicates a management contract or compensatory plan
#
Certain portions of this exhibit have been omitted because the omitted information is (i) not material and (ii) would likely cause competitive
harm to the Company if publicly disclosed.
Item
17. Undertakings.
The
undersigned registrant hereby undertakes to
(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii)
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate,
the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation
of Registration Fee” table in the effective registration statement; and
(iii)
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or
any material change to such information in the registration statement;
provided,
however, that paragraphs (1)(i), (1)(ii) and (1)(iii) above do not apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in reports filed with or furnished to the Securities and Exchange Commission by the registrant
pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration
statement.
(2)
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.
(4)
For the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b)
as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses
filed in reliance on Rule 430A (§230.430A of this chapter), shall be deemed to be part of and included in the registration statement
as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such
first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration
statement or made in any such document immediately prior to such date of first use.
(5)
That for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution
of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant
to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities
are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to
the purchaser and will be considered to offer or sell such securities to such purchaser:
(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule
424;
(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by
the undersigned registrant;
(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
or its securities provided by or on behalf of the undersigned registrant; and
(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser
(6)
That, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report
pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit
plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(7)
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of
the SEC such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer
or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification
by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant
to the requirements of the Securities Act, the registrant has duly caused this registration statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Kansas City, Kansas, on the day of October 7, 2024.
|
CINGULATE
INC. |
|
|
|
By: |
/s/
Shane J. Schaffer |
|
Name: |
Shane J. Schaffer |
|
Title: |
Chief Executive Officer |
Pursuant
to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities
held on the dates indicated:
Signature |
|
Title |
|
Date |
|
|
|
|
|
/s/
Shane J. Schaffer |
|
|
|
|
Shane J. Schaffer |
|
Chief Executive Officer, Chairman (Principal Executive
Officer) |
|
October 7, 2024 |
|
|
|
|
|
/s/
Jennifer L. Callahan |
|
|
|
|
Jennifer L. Callahan |
|
Chief Financial Officer (Principal Financial Officer
and Principal Accounting Officer) |
|
October 7, 2024 |
|
|
|
|
|
* |
|
|
|
October 7, 2024 |
Peter J. Werth |
|
Director |
|
|
|
|
|
|
|
* |
|
|
|
October 7, 2024 |
Bryan Lawrence |
|
Director |
|
|
|
|
|
|
|
* |
|
|
|
October 7, 2024 |
Jeffrey Ervin |
|
Director |
|
|
|
|
|
|
|
* |
|
|
|
October 7, 2024 |
John Roberts |
|
Director |
|
|
*By: |
/s/ Shane J. Schaffer |
|
|
Shane J. Schaffer |
|
|
Attorney-in-Fact |
|
Cingulate (NASDAQ:CINGW)
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