Full Press Release Details
Pharmaceuticals ANNOUNCES At-the-market $7 MILLION strategic INVESTMENT BY FUNDAMENTAL INVESTOR ACORN BIOVENTURES
Strategic investment from single biotech-focused institutional investor -
- Enables clinical development
of both fadraciclib and CYC140 in hematological malignancies and solid tumors -
Berkeley Heights, NJ, December 22, 2020 - Cyclacel Pharmaceuticals,
Inc. (NASDAQ: CYCC, NASDAQ: CYCCP; "Cyclacel" or the "Company"), a biopharmaceutical company developing innovative
medicines based on cancer cell biology, today announced it has entered into a definitive securities purchase agreement with Acorn
Bioventures, LP, a biotech-focused fundamental investor.
Under the agreement, Acorn Bioventures has agreed to purchase
in a registered direct offering 485,912 shares of common stock and 237,745 shares of newly designated Series B Preferred Stock
(convertible into shares of common stock at a ratio of 1:5), and in a concurrent private placement, warrants to purchase 669,854
shares of common stock, for aggregate gross proceeds of approximately $7 million. The offering is priced at-the-market pursuant
to the rules of The Nasdaq Stock Market. The warrants will be exercisable beginning twelve months following the date of issuance,
will expire on the five-year anniversary of the date of issuance, and have an exercise price of $4.13 per share.
Cyclacel intends to use substantially all of the net proceeds
of approximately $6.9 million from the registered direct offering and concurrent private placement to rapidly advance clinical
development of CYC140, a Polo-like-kinase 1 (PLK1) inhibitor.
"We are very pleased to support Cyclacel as they continue
to progress clinical development of their clinical-stage assets for patients with various types of cancer," commented Anders
Hove, MD and Isaac Manke, PhD, of Acorn Bioventures. "Cyclacel's value proposition focuses on fadraciclib, a CDK2/9
inhibitor, which has shown promising clinical activity and safety profile in patients with advanced cancers and CYC140, a PLK1
inhibitor. Extensive preclinical data support clinical investigation of CYC140 in a broad range of liquid and solid tumors."
"Acorn's philosophy is centered on achieving long-term
investment returns after evaluating the scientific and clinical merits of novel medicines," said Spiro Rombotis, President
& Chief Executive Officer of Cyclacel. "We are excited by the prospect that our two internally-discovered molecules,
fadraciclib and CYC140, can move forward in parallel. Our clinical development program will evaluate both agents across a broad
spectrum of hematological and solid tumor types with the aim of offering novel alternatives to patients with unmet medical needs."
Connell Drive, Suite 1500, Berkeley Heights, NJ 07922, USA Tel +1 908 517 7330 Fax +1 866 271 3466
James Lindsay Place, Dundee, DD1 5JJ, UK Tel +44 1382 206 062 Fax +44 1382 206 067
The common stock is being offered pursuant to a shelf registration
statement on Form S-3 (File No. 333-231923), previously filed with the Securities and Exchange Commission ("SEC")
on June 3, 2019 and declared effective on June 21, 2019. Such shares of common stock are being offered only by
means of a prospectus supplement. A prospectus supplement and the accompanying prospectus relating to the registered direct offering
may be obtained, when available, on the SEC's website at http://www.sec.gov or by contacting Cyclacel Pharmaceuticals, Inc.
The warrants described above are being offered in a private
placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and Rule 506(b) of
Regulation D promulgated thereunder and, along with the shares of common stock underlying the warrants, have not been registered
under the Act or applicable state securities laws. Accordingly, the warrants and underlying shares of common stock may not be
offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption
from registration requirements of the Act and such applicable state securities laws.
This press release shall not constitute an offer to sell, or
the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such
an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such
state or jurisdiction.
About Cyclacel Pharmaceuticals, Inc.
Cyclacel Pharmaceuticals is a clinical-stage biopharmaceutical
company developing innovative cancer medicines based on cell cycle, transcriptional regulation and mitosis biology. The transcriptional
regulation program is evaluating fadraciclib, a CDK2/9 inhibitor, in solid tumors and hematological malignancies. The anti-mitotic
program is evaluating CYC140, a PLK1 inhibitor, in advanced cancers. Cyclacel's strategy is to build a diversified biopharmaceutical
business based on a pipeline of novel drug candidates addressing oncology and hematology indications. For additional information,
please visit www.cyclacel.com.
Forward-looking Statements
This news release contains certain
forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from
historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements
include statements regarding, among other things, the efficacy, safety and intended utilization of Cyclacel's product candidates,
the conduct and results of future clinical trials, plans regarding regulatory filings, future research and clinical trials and
plans regarding partnering activities. Factors that may cause actual results to differ materially include the risk that product
candidates that appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale
or later clinical trials, trials may have difficulty enrolling, Cyclacel may not obtain approval to market its product candidates,
the risks associated with reliance on outside financing to meet capital requirements, and the risks associated with reliance on
collaborative partners for further clinical trials, development and commercialization of product candidates. You are urged to
consider statements that include the words "may," "will," "would," "could," "should,"
"believes," "estimates," "projects," "potential," "expects," "plans,"
"anticipates," "intends," "continues," "forecast," "designed," "goal,"
or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description
of the risks and uncertainties the Company faces, please refer to our most recent Annual Report on Form 10-K and other periodic
and other filings we file with the Securities and Exchange Commission and are available at www.sec.gov. Such forward-looking
statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
Company: Paul McBarron, (908) 517-7330, pmcbarron@cyclacel.com
Investor Relations: Russo Partners LLC, Jason Assad, (678)
570-6791, jason.assad@russopartnersllc.com
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