CNS Pharmaceuticals Announces Completion of Registered Direct Offering

CNS Pharmaceuticals, Inc., a clinical-stage pharmaceutical company specializing in developing innovative treatments for primary and metastatic cancers in the brain and central nervous system, disclosed on October 23, 2024, that it had finalized a significant registered direct offering. As detailed in the 8-K SEC filing, CNS Pharmaceuticals inked a placement agency agreement with A.G.P./Alliance Global Partners on the same day for the sale of 3,700,000 shares of the company’s common stock, along with pre-funded warrants to buy 13,947,060 additional shares of common stock.

The registered direct offering, set at a per share purchase price of $0.17 for Common Stock and $0.169 for Pre-Funded Warrants, aims to raise gross proceeds of approximately $3.0 million for CNS Pharmaceuticals. The Company intends to allocate the net proceeds from the offering towards working capital and general corporate purposes.

Under certain conditions, each Pre-Funded Warrant is convertible into one share of Common Stock at $0.001 per share. However, holders of the warrants are restricted from exceeding specified ownership limitations upon exercise. The closing of the transaction is anticipated to occur on October 24, 2024.

Furthermore, CNS Pharmaceuticals committed to a 30-day restriction post the Closing Date from issuing any additional shares or securities convertible into Common Stock. It also agreed to avoid Variable Rate Transactions for the subsequent 90 days after the closing, barring exceptions.

The Offering was performed in accordance with a shelf registration statement on Form S-3 (File No. 333-279285) filed with the Securities and Exchange Commission and declared effective on May 17, 2024.

CNS Pharmaceuticals additionally outlined agreements with the Placement Agent for payment of fees and expenses related to the offering. The legal opinions, agreements, and further details regarding these transactions are included in the 8-K filing.

Following the completion of the offering, a press release was issued by the Company to provide detailed information about the transactions. Moreover, as of October 24, 2024, Pre-Funded Warrants to procure 8,828,530 shares of common stock have been exercised, resulting in 49,574,933 outstanding Common Stock shares.

Investors and stakeholders are urged to review the detailed financial statements and accompanying exhibits as part of the Company’s commitment to transparency.

Please be advised that this article is based on the details revealed in the 8-K filing by CNS Pharmaceuticals and the attached press release for comprehensive understanding of the transaction and its implications.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read CNS Pharmaceuticals’s 8K filing here.

CNS Pharmaceuticals Company Profile

CNS Pharmaceuticals, Inc, a clinical pharmaceutical company, engages in the development of anti-cancer drug candidates for the treatment of brain and central nervous system tumors. The company's lead drug candidate is Berubicin, which completed Phase I clinical trial that is used for the treatment of glioblastoma multiforme.