CervoMed

Canaccord Genuity Acted as a Placement Agent on CervoMed’s Private Placement of Up to $149.4 Million

Canaccord Genuity is pleased to announce its client CervoMed Inc. (NASDAQ: CRVO)(the “Company”), a clinical-stage company focused on developing treatments for age-related neurologic disorders, entered into a definitive securities purchase agreement on March 28th, 2024 in connection with a private placement financing resulting in gross proceeds of up to approximately $149.4 million.

The financing was led by RA Capital and includes participation from other institutional investors, including Armistice Capital, Special Situations Funds and Soleus Capital.

Under the securities purchase agreement, the investors have agreed to purchase an aggregate of 2,532,285 units (the “Units”), each Unit comprised of (i) (A) one share of its common stock or (B) one pre-funded warrant to purchase shares of its common stock, and in each case, (ii) one Series A warrant to purchase shares of its common stock to a select group of institutional and accredited healthcare specialist investors in a private placement. A Unit comprised of one share of common stock and one Series A warrant shall have a purchase price of $19.745 and a Unit comprised of one pre-funded warrant and one Series A warrant shall have a purchase price of $19.744.

The pre-funded warrants have an exercise price of $0.001 per share, will be immediately exercisable and will not expire. The Series A warrants have an exercise price of $39.24 per share, representing a 100% premium to the last sale, will be immediately exercisable, and will expire at the earlier of (i) April 1, 2027 or (ii) 180 days after the date that the Company makes a public announcement of positive top-line data from the Company’s Phase 2b RewinD-LB clinical trial evaluating neflamapimod for treatment of patients with dementia with Lewy bodies (“DLB”).

The Company anticipates the possible gross proceeds from the private placement to be approximately $50 million, before deducting any offering-related fees and expenses, and up to an additional approximately $99.4 million in gross proceeds if the Series A warrants are fully exercised for cash.

Canaccord Genuity acted as a placement agent for the financing.

CervoMed is currently developing neflamapimod, an investigational orally administered small molecule brain penetrant that inhibits p38MAP kinase alpha (p38α). Neflamapimod has the potential to treat synaptic dysfunction, the reversible aspect of the underlying neurodegenerative processes that cause disease in DLB and certain other major neurological disorders. Neflamapimod is currently being evaluated in a Phase 2b clinical trial in patients with DLB.