CYCN - Cyclerion Therapeutics down 6% on spin off agreement

2023-05-12 02:59:46 ET

• Cyclerion Therapeutics ( NASDAQ: CYCN ) enter agreement to sell two of its sGC stimulator assets in exchange for cash and equity ownership to a new private company.
• Investors will park $81M to develop zagociguat to treat MELAS* and other diseases associated with mitochondrial dysfunction and advance CY3018.
• Under the terms of the asset purchase agreement, Cyclerion will receive an $8M cash payment at closing, reimbursement for all expenses related to zagociguat and CY3018 for the period between the signing and closing of the transaction, and 10% equity ownership in NewCo that is subject to anti-dilution protection through $100M in post-money valuation.
• This investment will take place on May 19, 2023 and the current Cyclerion shareholders including Invus and CEO Peter Hecht are participating in the capitalization of the new company.
• The stock price is down 6% during late hours on Thursday late hours.

For further details see: