Cyclacel secures $60 million equity financing facility

Under the terms of the agreement, Cyclacel will determine the exact timing and amount of any committed equity financing facility (CEFF) financings, subject to certain conditions. Kingsbridge is committed under the CEFF to purchase the lesser of 4.08 million shares of common stock or $60 million of common stock from Cyclacel.

Throughout the term of the agreement, Kingsbridge is restricted from engaging in any shorting transaction of Cyclacel’s common stock. The agreement does not prohibit Cyclacel from conducting additional debt or equity financing, other than financings similar to the CEFF.

In connection with the CEFF, Cyclacel has issued a warrant to Kingsbridge to purchase up to 175,000 shares of common stock at an exercise price of $7.17 per share which represents a 30% premium over the average of the closing bid prices of Cyclacel’s common stock during the five trading days preceding the signing of the agreement. The warrant will become exercisable six months from the date of the agreement and will remain exercisable, subject to certain exceptions, for a period of five years thereafter.

Spiro Rombotis, Cyclacel’s president and CEO, said: “In total we are simultaneously developing three clinical candidates in six different indications and are progressing our preclinical programs. To support this aggressive pace of innovation at Cyclacel we have accessed new capital under flexible terms to be drawn down as we need it. This transaction makes strategic sense for Cyclacel in light of the multiple opportunities for building stockholder value that are open to us at this time.”