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Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC) has successfully raised $3 million through a private placement of its convertible Series F Preferred Stock. The company announced the funding on June 20, 2025, which will be used for working capital and general corporate purposes, extending its cash runway into the third quarter of 2025 [1].

The private placement includes the issuance of warrants to purchase common stock at specified prices, with these warrants expiring in five years. The convertible Series F Preferred Stock is convertible into 3.27 shares of Common Stock, pending stockholder approval per Nasdaq rules [1].

The funding will support Cyclacel’s ongoing development of its cancer medicine pipeline, which includes the anti-mitotic program plogosertib, a PLK1 inhibitor. The company's strategy is to build a diversified biopharmaceutical business addressing oncology and hematology indications [1].

Arc Group Ltd. served as the financial advisor, and Rimon P.C. provided legal counsel to Cyclacel during the private placement. The securities being issued and sold in the private placement have not been registered under the Securities Act of 1933, as amended, or any state’s securities laws, and were issued and sold in reliance on Regulation S of the Securities Act [1].

Investors in the private placement include several institutional investors who have recently added shares of Cyclacel stock to their portfolios. For example, ARMISTICE CAPITAL, LLC added 1,269,485 shares to its portfolio in Q1 2025, and POINT72 ASSET MANAGEMENT, L.P. added 14,375 shares to its portfolio in the same period [2].

While the private placement provides a short-term boost to Cyclacel's cash runway, it also introduces potential risks. The use of convertible preferred stock financing may dilute existing shareholders' equity, and the private placement of securities not registered under the Securities Act presents legal and compliance risks. Additionally, the financing is explicitly stated to only extend the company's cash runway into the third quarter of 2025, which may indicate potential financial instability or a lack of long-term funding solutions [1].

References:
[1] https://www.nasdaq.com/articles/cyclacel-pharmaceuticals-secures-3-million-private-placement-convertible-preferred-stock
[2] Hedge Fund Activity