Shares of the Cyclo Therapeutics, Inc. (CYTH) stock were declining in the intraday trading session on December 6, 2021. CYTH stock price saw a downtrend of 3.94% to reach $4.58 a share at the time of this writing. The trading volume as of this writing was 699,333, significantly higher than the average trading volume. Let’s deep dive to understand the cause of this rise.
What’s Happening?
Cyclo Therapeutics today announced that it has received the that its study may proceed from the U.S. Food and Drug Administration. The study is related to investigational new drug application of the CYTH stock for the Phase 2 study of Trappsol® Cyclo™ to treat Alzheimer’s disease. The company is now looking forward to starting the study in order to prove the effectiveness of its new drug application.
Public offering of CYTH stock:
On November 17, 2021, CYTH stock did announce the starting of its underwritten public offering of 1,950,000 shares of its common stock. The pricing under this public offering was $6.00 per share. The gross proceeds resulting from this offering were $11.7 million excluding underwriter discounts and other offering-related expenses. Moreover, CYTH stock granted a 45-day option to the underwriter to buy additional 292,500 shares of its common stock. The price was the same as the price under the public offering.
Financial View of CYTH stock:
CYTH stock on November 16, 2021, announced the third quarter 2021 financial results according to which:
The company suffered a net loss of $3.8 million in the third quarter of 2021. The company spent $1.8 million in research and development expenses in the third quarter of 2021. This represents 69% as compared to $1.1 million in research and developments in the same period of the previous year. The increase in these expenses is attributable to the international clinical program and U.S. clinical trials of the CYTH stock. The management is anticipating that the research and development expenses will further increase in the upcoming quarters as the stock is seeking regulatory approval for Trappsol® Cyclo™ for the treatment of NPC and Alzheimer’s disease. By the end of the third quarter of 2021, CYTH stock had $8.4 million in cash.
Conclusion:
Things are going well for Cyclo stock in the stock market. The company is anticipating increased research and development expenses in the upcoming quarter which reflects the positive operational growth in the future. In a nutshell, investors need to keep an eye on this stock.
