Cingulate places CEO Shane Schaffer on leave, appoints interim leadership

Cingulate Inc. (NASDAQ:CING), a micro-cap biotech company with a market capitalization of $21.74 million, announced Thursday that its Chief Executive Officer and Chairman, Shane Schaffer, has been placed on administrative leave following a criminal charge. According to InvestingPro data, the company faces significant financial challenges, with negative EBITDA of $15.75 million in the last twelve months. According to a press release statement based on a filing with the Securities and Exchange Commission, Schaffer was charged with one count of aggravated domestic battery on August 9.

The company’s board of directors took action on August 14, appointing Jennifer Callahan, Cingulate’s current Chief Financial Officer, as interim Chief Executive Officer, effective immediately. Callahan will continue to serve as CFO while carrying out her interim CEO duties until further notice from the board. The board also named John A. Roberts, an existing board member, as Executive Chairman, a new role in which he will provide operational support to the company’s executive management team.

In addition, the board appointed Jeff Ervin, a director and member of the audit committee, as Chairman of the Audit Committee. The company stated that Ervin qualifies as an audit committee financial expert under SEC regulations and Nasdaq Marketplace Rules.

Cingulate reported that there are no arrangements or understandings with other persons regarding the appointments of Callahan or Roberts, and that neither has any family relationships with other directors or executive officers. The company also noted that neither Callahan nor Roberts has any material interest in transactions requiring disclosure under SEC rules.

Cingulate indicated it may enter into or amend compensatory arrangements with Callahan, Roberts, and Schaffer in connection with their new roles, and will disclose any such agreements as required.

Cingulate Inc. is listed on the Nasdaq Capital Market under the ticker CING. Its warrants, exercisable for common stock, trade under the symbol CINGW. The stock currently trades at $4.13, having declined 16.23% year-to-date, with its next earnings report due on August 18, 2025. InvestingPro subscribers have access to over 8 additional key insights about the company’s financial health and market position.

All information is based on a press release statement and the company’s filing with the Securities and Exchange Commission.

In other recent news, Cingulate Inc. has submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration for CTx-1301, an extended-release ADHD treatment candidate. This move follows the company’s receipt of a PDUFA fee waiver, saving approximately $4.3 million, which was granted under the small business provision of the Federal Food, Drug, and Cosmetic Act. In preparation for the FDA filing, Cingulate appointed Nilay Patel as Chief Legal Officer, bringing over 20 years of experience in the pharmaceutical industry. Meanwhile, the company has placed its CEO, Shane J. Schaffer, on administrative leave due to ongoing legal matters, with CFO Jennifer Callahan stepping in as interim CEO. Additionally, Cingulate announced the expansion of its equity incentive plan, adding 800,000 shares following stockholder approval. The expansion was part of several proposals voted on during the 2025 Annual Meeting of Stockholders, which also included the election of Peter J. Werth as a Class I director. Furthermore, the stockholders ratified KPMG LLP as the independent auditor for the year ending December 31, 2025, and approved an amendment for a reverse stock split of the company’s common stock.

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