Cardiol Therapeutics Secures US$11 Million Financing and Extends Cash Runway into Q3 2027

Executive Summary

• Cardiol Therapeutics completed a private placement raising US $11 million (US $10 M initial closing, US $1 M pending), providing cash to fund operations into Q3 2027.
• The company highlighted pivotal Phase III MAVERIC trial progress and new ARCHER trial data showing significant LV‑mass reduction, supporting further orphan‑drug designation for CardiolRx™ and advancement of next‑generation CRD‑38 therapy.
• Units were sold at US $1.00 each, each including one Class A common share and half a warrant (full warrant exercisable at US $1.35 per share for 24 months, with acceleration clause if the share price exceeds US $2.00 for five consecutive days).

Key Details

• Financing Structure:
• Total units sold: 11 million @ US $1.00 per unit → gross proceeds of US $11 million.
• Each unit = 1 Class A common share + ½ warrant (full warrant = right to purchase 1 additional share at US $1.35).

• Warrant term: exercisable for 24 months; acceleration provision triggers expiry on the 30th day after a news release if VWAP > US $2.00 for five consecutive trading days.

• Closing Timeline:

• Initial closing of US $10 million already completed.

• Remaining US $1 million expected to close on Monday, October 20 2025.

• Use of Proceeds:

• Intended to support corporate operations and clinical development activities through Q3 2027, including the Phase III MAVERIC trial and CRD‑38 program.

• Clinical Highlights:

• MAVERIC Phase III trial for orphan drug CardiolRx™ in recurrent pericarditis is fully funded to a planned NDA submission.
• ARCHER trial data (LV‑mass reduction) will be presented at a cardiology conference in November 2025, reinforcing proof of concept for anti‑inflammatory/anti‑fibrotic mechanism.

• CRD‑38 subcutaneous formulation advancing with partnership discussions with major pharmaceutical companies.

• Regulatory & Legal Notes:

• Securities not registered under the U.S. Securities Act; offering made pursuant to Regulation S exemptions.
• Certain insiders participated; transaction qualifies as a related‑party transaction under MI 61‑101, exempt from formal valuation and minority‑shareholder approval because consideration ≤ 25 % of market cap.

Notable Quotes

• “As recruitment in our pivotal Phase III MAVERIC trial gains momentum… we are pleased to have secured a direct investment of US$11 million to strengthen our balance sheet and accelerate the development of our novel heart failure drug, CRD‑38,” – David Elsley, President & CEO.

This release contains forward‑looking statements; actual results may differ materially.