Cingulate CEO cleared of charges, retains board confidence

In a recent development, Cingulate Inc., a Delaware-incorporated pharmaceutical company, announced the dismissal of charges against its CEO and Chairman, Shane Schaffer. The legal matter, which was initially disclosed on October 4, 2024, has been resolved as of January 28, 2025. This information was released in a Form 8-K filing with the Securities and Exchange Commission on Monday. According to InvestingPro data, the company’s stock has faced significant challenges, declining over 71% in the past year, though it maintains a strong liquidity position with a current ratio of 7.35.

The original allegation against Dr. Schaffer was not detailed in the filing. However, the resolution of the charge has been confirmed, and it was noted that Dr. Schaffer continues to enjoy the full confidence and support of the Board of Directors to lead the company. Cingulate Inc. specializes in pharmaceutical preparations and is listed on the Nasdaq Capital Market under the ticker symbols (NASDAQ:CING) for its common stock and NASDAQ:CINGW for its warrants. With a market capitalization of just $15 million, analyst price targets range widely from $8 to $75, suggesting significant potential upside according to InvestingPro analysis.

The company’s headquarters are located in Kansas City, KS, and it operates under the organization name 03 Life Sciences. The resolution of this legal issue appears to have no immediate impact on the company’s operations or leadership structure.

The Form 8-K filing serves as an official notice of significant events that shareholders and the Securities and Exchange Commission should be informed about. In this case, the event is related to the company’s top executive, which could be of interest to investors and stakeholders monitoring the governance and management of Cingulate Inc.

The announcement comes without further details regarding the nature of the initial allegation or the terms of the resolution. The company has not provided any additional commentary on the matter beyond the factual statement made in the SEC filing.

In other recent news, Cingulate Inc. announced the completion of the final FDA-required clinical program for its ADHD treatment, CTx-1301. This development follows a successful food effect study, which determined the bioavailability of CTx-1301 in both fed and fasted states. Based on these advancements, H.C. Wainwright increased its price target on Cingulate shares to $20.00, maintaining a Buy rating.

Cingulate also adjusted the employment agreement of Executive Vice President and Chief Medical (TASE:PMCN) Officer, Matthew N. Brams, discontinuing quarterly equity grants while keeping him eligible for annual ones. In addition, Roth/MKM gave Cingulate a Buy rating, anticipating a potential $1.6 billion in sales based on promising Phase 3 data of CTx-1301.

Cingulate has increased its At The Market offering price from $15.2 million to $23.5 million, sold shares totaling approximately $11.3 million, and raised approximately $11.7 million in capital to support its operations and development projects. Lastly, the company secured a European patent for CTx-1301, extending its market reach to up to 30 European territories. These are some of the recent developments for Cingulate Inc.

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