Cardiol closes $11-million (U.S.) placement

Executive Summary

• Cardiol Therapeutics completed a private placement offering of units for net proceeds of $11 million (U.S.), extending its cash runway into the third quarter of 2027.
• The financing fully funds the Phase III pivotal Maveric trial for CardiolRx in recurrent pericarditis through to the New Drug Application (NDA) submission with the FDA.
• The company also announced that its next-generation therapy CRD-38 for heart failure is financed through clinical development, with partnership discussions advancing with leading pharmaceutical companies.

Key Details

• Financing Structure: The company sold 11 million units at a price of $1.00 (U.S.) per unit.
• Warrant Terms: Each unit includes one Class A common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share at an exercise price of $1.35 (U.S.) for 24 months from issuance.
• Acceleration Provision: Warrants include an acceleration clause allowing expiry to advance to the 30th day following a news release if the daily volume-weighted average trading price exceeds $2.00 (U.S.) for five consecutive trading days.
• Use of Proceeds: Proceeds support operations into Q3 2027, specifically funding the Maveric Phase III trial through to FDA NDA submission and advancing CRD-38 clinical development.
• Related Party Transaction: Certain insiders participated in the offering. The company relied on exemptions from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101, as the fair market value of the interested party transaction did not exceed 25% of the company's market capitalization.
• Clinical Updates:
  • Maveric Trial: Recruitment is gaining momentum with several prominent U.S. centers enrolling patients for the Phase III pivotal trial in recurrent pericarditis.
  • Archer Trial Data: New data highlighting a significant reduction in left ventricular (LV) mass and read-through to heart failure will be presented at a cardiology conference in November 2025. This marks the first evidence of structural and remodeling improvement in patients with myocarditis.
  • CRD-38: A next-generation subcutaneous formulation of the API, targeting the broader heart failure market, is advancing with partnership discussions.

Notable Quotes

• "As recruitment in our pivotal phase III Maveric trial gains momentum... we are pleased to have secured a direct investment of $11-million (U.S.) to strengthen our balance sheet and accelerate the development of our novel heart failure drug, CRD-38..." — David Elsley, President and CEO.
• "The Archer findings support pursuing an additional orphan drug designation for CardiolRx in myocarditis and advancing the development of our next-generation CRD-38 formulation... Notably, blockbuster drugs that reduce LV mass have been shown to lower heart failure-related death and hospitalization..." — David Elsley, President and CEO.