Cyclo Therapeutics Inc (NASDAQ:CYTH) Stock Rallies 26%: Is It Sustainable?
Cyclo Therapeutics Inc. (NASDAQ:CYTH), a clinical-stage biotech firm, is involved in the development of life-changing medicines through the application of innovation and science. The company was in prime focus yesterday, possibly in light of an announcement made the day before, and its stock ended up with gains of as much as 26% as a consequence.
On August 2, Cyclo Therapeutics Inc. announced that it had been successful in completing a private placement with Rafael Holdings Inc., which had been announced previously. Rafael picked up 4000000 shares of Cyclo common stock in addition to warrants, which would allow it to pick up an additional 4000000 shares of the company’s common stock. The transaction was completed for a total of $500,000. The warrants can be exchanged for an exercise price set at $1.25 a share and can be exercised within a period of seven years.
The company revealed that the net proceeds from the private placement would be used for working capital needs and also for general corporate purposes. That would also include financial support for the company’s Trappsol Cyclo development initiatives. The Chief Executive Officer of Cycle, N. Scott Fine, spoke about the matter as well. He noted that it was an important step for the company to have closed the private placement since it would allow Cyclo to continue to work on its strategic goals.
He went on to note that the fresh capital would also help the company continue to move its Niemann-Pick Type C study forward and hit the ultimate target of providing patients with a necessary solution. The Chief Executive Officer of Rafael, William Conkling, noted that everyone at his company was considerably encouraged by the sustained progress that had been made by Cyclo and its commitment to coming up with a treatment for those suffering from the Niemann-Pick Type C disease.
The company has also been making breakthroughs in its work with the study. On June 29, it published positive data from the Phase 12 clinical trial. In the trial, the product Tappsol Cyclo demonstrated positive efficacy and safety results in the treatment of Niemann-Pick Type C disease. It is a genetic, rare disease that leads to the accumulation of cholesterol in cells. Such a state of affairs leads to dysfunction in the spleen, brain, liver, and line, and often premature death.
The manuscripts of the clinical trial, which were titled Long-term administration of intravenous Trappsol® CycloTM (HPCD) results in clinical benefits and stabilization or slowing of disease progression in patients with Niemann-Pick Disease Type C1: Results of an international 48-week Phase I/II trial’, were published in an official journal brought out by Molecular Genetics and Metabolism Reports.
The company announced at the time that it had continued enrollment for the crucial Phase 3 study of the product. The company aimed to recruit around 93 pediatric and adult patients for the study. The enrollment process was being conducted by the company across 12 nations, and the whole thing would be completed by the end of 2023.
