Cardiol closes $11.4-million (U.S.) financing

Executive Summary

• Cardiol Therapeutics Inc. has completed a private placement offering of units, raising total gross proceeds of $11.4 million (U.S.).
• The financing extends the company's cash runway into the third quarter of 2027, supporting operations and the development of its heart failure drug candidates.
• The offering includes the sale of 11.4 million units at $1.00 per unit, with each unit comprising one common share and a half-warrant, featuring specific acceleration provisions.

Key Details

• Gross Proceeds: $11.4 million (U.S.).
• Units Sold: 11.4 million units.
• Price Per Unit: $1.00 (U.S.).
• Unit Composition: Each unit consists of one Class A common share and one-half of one common share purchase warrant.
• Warrant Terms:
  • Each whole warrant entitles the holder to acquire one additional common share.
  • Exercise Price: $1.35 (U.S.).
  • Term: 24 months from the date of issuance.
  • Acceleration Provision: Warrants may be accelerated to expire on the 30th day following a news release if the daily volume-weighted average trading price of common shares exceeds $2.00 (U.S.) for five consecutive trading days.
• Use of Proceeds: To strengthen the balance sheet and accelerate the development of CRD-38 and other programs, with cash resources anticipated to support operations into Q3 2027.
• Insider Participation: Certain insiders participated in the offering, classified as a related party transaction under Multilateral Instrument 61-101. The company relied on exemptions from formal valuation and minority shareholder approval requirements as the fair market value of the interested party portion did not exceed 25% of the company's market capitalization.
• Clinical Context: The financing supports the ongoing pivotal Phase III Maveric trial for recurrent pericarditis and the development of CRD-38, following positive top-line results from the Archer trial in acute myocarditis which showed a significant reduction in left ventricular (LV) mass.

Notable Quotes

• "As recruitment in our pivotal phase III Maveric trial gains momentum, with several prominent centres across the U.S. now enrolling patients, we are pleased to have secured a direct investment of $11.4-million (U.S.) to strengthen our balance sheet and accelerate the development of our novel heart failure drug, CRD-38, based on the recently reported findings from our Archer trial," said David Elsley, president and chief executive officer of Cardiol Therapeutics.