Cognition Therapeutics Inc. on Monday said its initial public offering of 3,350,000 shares of common stock price is expected to trade at $11 to $13, according to a filing on Monday with the U.S. Securities and Exchange Commission.
The biotech firm, focused on developing treatments targeting age-related degenerative diseases and disorders of the central nervous system including Alzheimer’s, plans to raise about $40 million, earmarked to fund research and development.
The underwriters were granted an option for a 45-day period to purchase up to 502,000 additional common shares, the filing said. B. Riley Securities is serving as lead book running manager and Oppenheimer & Co. as joint book running manager.
The company, which expects to trade on Nasdaq under the ticker symbol CGTX, is a clinical stage biopharmaceutical company focused on developing treatments targeting age-related degenerative diseases and disorders of the central nervous system. Founded in Pittsburgh in 2007, most of its 18 employees are based at its South Side lab. Its corporate team is based in New York.
Cognition posted a net loss of $7.8 million for the year ended Dec. 31, 2020, and of $1.3 million for the six months ended June 30. As of June 30, it had an accumulated deficit of $83.6 million, according to the filing. Clinical trials have been funded by about $168.4 million in cumulative nondilutive grants, primarily awarded by the National Institute of Aging, a division of the National Institutes of Health. Cognition has also raised $57.5 million in gross proceeds through private placements of convertible preferred stock, convertible promissory notes and Simple Agreements for Future Equity, the filing said.
Investors in Cognition Therapeutics include angel networks Golden Seeds LLC of New York and the Sofia Fund of Minneapolis, as well as Wexford-based BlueTree Allied Angels. Other local investors include Innovation Works and the Pittsburgh Life Sciences Greenhouse.
