Cingulate Inc. Enters into Note Purchase Agreement with Streeterville Capital, LLC

Cingulate Inc. (NASDAQ: CING), a biopharmaceutical company specializing in Precision Timed Release™ (PTR™) drug delivery platform technology, announced on December 20, 2024, that it has executed a Note Purchase Agreement with Streeterville Capital, LLC, a Utah limited liability company. This agreement entails the issuance and sale of an unsecured promissory note (the “Note”) to Streeterville Capital in the amount of $5,480,000, inclusive of an original issue discount of $450,000.

The Note, bearing an interest rate of 9% per annum, is set to mature 18 months after the date of issuance. The aim of the transaction is to secure funding for Cingulate’s working capital and general corporate purposes. Cingulate’s subsidiaries, Cingulate Therapeutics LLC and Cingulate Works, Inc., have provided a guarantee for the obligations under this agreement.

Under the terms outlined in the agreement, Streeterville Capital has the option to partially redeem the Note starting from July 2, 2025, up to $550,000 per month. In case the Note remains outstanding 90 days after its effective date, a monitoring fee will be imposed on the Company. Additionally, the agreement stipulates customary events of default, with corresponding increases to the outstanding balance based on the severity of the default, as well as provisions for prepayment.

Moreover, the Note Purchase Agreement places restrictions barring the Company from certain transactions and contains provisions for potential additional investments by Streeterville Capital. The Company must also comply with any terms more favorable to other debt security holders that may arise during the Note’s duration.

Further details of the Note Purchase Agreement, the Note, and the Guaranty provided by Cingulate’s subsidiaries can be found in the full text of the corresponding documents filed as Exhibits. The transaction ensures financial flexibility for Cingulate as it pursues various operational activities, including clinical, manufacturing, and regulatory endeavors, extending its cash runway into the fourth quarter of 2025. The anticipated NDA submission for potential FDA approval of CTx-1301 is slated for mid-2025.

Following this development, Cingulate issued a press release on December 23, 2024, providing details of the financing transaction. The funds raised are expected to support the Company’s ongoing initiatives towards bringing innovative pharmaceutical products to market, ultimately improving patient outcomes and quality of life.

Investors and the public are advised to exercise caution in their assessments of forward-looking statements as they are subject to risk factors disclosed in the Company’s filings with the Securities and Exchange Commission (SEC). Cingulate Inc. remains committed to updating stakeholders on any material developments in compliance with regulatory obligations.

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

About Cingulate

Cingulate Inc, a biopharmaceutical company, focuses on the development of pharmaceutical products for the treatment of attention deficit/hyperactivity disorder and anxiety in the United States. The company’s stimulant medications are CTx-1301 (dexmethylphenidate), which is in phase 3 clinical trial, as well as CTx-1302 (dextroamphetamine), which is in investigational new drug application development for the treatment of attention deficit/hyperactivity disorder intended for children, adolescents, and adults.