SCYNEXIS Announces \$40 Million Private Placement to Advance SCY-770 for ADPKD

Key Highlights

• Private Placement Announced: SCYNEXIS, Inc. (NASDAQ: SCYX) will raise approximately \$40 million in upfront gross proceeds through a private placement with leading institutional and accredited investors.
• Potential for Additional Funds: The company could secure up to an additional \$52.2 million if the newly issued common warrants are exercised in full for cash, subject to shareholder approval.
• Financing Participants: The financing includes participation from both new and existing institutional investors, including Great Point Partners, LLC, Squadron Capital Management LLC, Adage Capital Management, L.P., Propel Bio Partners, and other significant healthcare-dedicated funds. Notably, the company’s President and CEO, Dr. David Angulo, is also participating in the placement.
• Use of Proceeds: Proceeds will provide working capital and general corporate purposes. Management expects this capital, together with existing cash, equivalents, and marketable securities, will fund operations into mid-2029 (excluding potential warrant exercises).
• Stockholder Approval Required: The exercise of the newly issued common warrants (and issuance of underlying shares) is subject to shareholder approval for an increase in authorized shares of common stock. A meeting for this approval is to be convened within 90 days of closing.
• Strategic Focus: SCYNEXIS is advancing SCY-770, its candidate for Autosomal Dominant Polycystic Kidney Disease (ADPKD), which has orphan drug designation. The platform also includes the antifungal BREXAFEMME® (ibrexafungerp tablets), licensed to GSK, and SCY-247 in clinical development.
• Warrant Terms: The placement consists of 34,750,000 common shares, 8,750,000 pre-funded warrants, and accompanying common warrants for up to 43,500,000 shares, with pricing at \$0.92 per share/warrant and \$0.9199 per pre-funded warrant/warrant. Common warrants are exercisable at \$1.20 per share, beginning after shareholder approval and expiring on the earlier of five years from closing or 30 days after SCY-770 topline Week 48 data is released.
• Placement Agent: Guggenheim Securities, LLC is serving as the sole placement agent for the transaction.

Details of the Private Placement

SCYNEXIS, Inc. has entered into a securities purchase agreement to issue:

• 34,750,000 shares of common stock,
• Pre-funded warrants to purchase up to 8,750,000 shares of common stock, and
• Accompanying common warrants to purchase up to 43,500,000 shares of common stock or pre-funded warrants in lieu of shares.

Each common share or pre-funded warrant will be sold with one common warrant. The combined price per share and warrant is \$0.92, and \$0.9199 per pre-funded warrant and warrant.

The common warrants are not immediately exercisable; they become exercisable after shareholder approval for an increase in authorized shares. The exercise price is set at \$1.20 per share, and they expire at the earlier of five years post-closing or 30 days after the public release of topline Week 48 data from the company’s Phase 2 proof-of-concept study of SCY-770 in ADPKD.

Notably, 108,695 common shares and accompanying common warrants were sold to Dr. David Angulo, the company’s President and CEO, underscoring management’s confidence in the company’s future.

Shareholder-Important and Potentially Price-Sensitive Information

• Shareholder Approval: The company must secure shareholder approval for an increase in authorized common stock to enable the exercise of the new common warrants. This is a critical near-term event that could affect share value and dilution.
• Potential Dilution: If all warrants are exercised, the share count could increase significantly, potentially impacting share price. Investors should closely monitor the outcome of the planned shareholder meeting and any associated dilution.
• Milestone-Linked Warrant Expiry: The common warrants will expire early if SCYNEXIS releases topline Week 48 data from the SCY-770 Phase 2 study, potentially aligning warrant exercise and value inflection with key clinical milestones.
• Clinical Catalyst: The progress and anticipated topline results from the Phase 2 proof-of-concept study for SCY-770 in ADPKD are likely to be major share price catalysts. The warrant structure explicitly ties to the timing of this data release.
• Extended Runway: Management projects the current and anticipated funds (excluding warrant exercises) will last into mid-2029, significantly extending the company’s operational runway.
• Management Participation: The CEO’s participation in the financing may bolster investor confidence.
• SEC Registration: The securities issued have not yet been registered under the Securities Act and cannot be traded until a registration statement is filed and declared effective. The company has entered into a registration rights agreement with investors to do so.

About SCYNEXIS

SCYNEXIS is focused on developing treatments for severe rare diseases. Its lead candidate, SCY-770, is in development for ADPKD and holds orphan drug designation. The company’s antifungal platform includes BREXAFEMME® (ibrexafungerp tablets), licensed to GSK, and SCY-247 in clinical development.

Forward-Looking Statements and Risks

The company cautions that forward-looking statements in this release are subject to risks, including but not limited to: successful closing of the private placement, timely shareholder and regulatory approvals, milestone achievement in the SCY-770 program, stock price volatility, and general market and economic conditions. These and other risks are detailed in SCYNEXIS’s SEC filings, including the recent Annual Report on Form 10-K.

Contact Information

Investor Relations: Irina Koffler, LifeSci Advisors
Tel: 917-734-7387
Email: [email protected]

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. All statements are as of the date of the report, and SCYNEXIS undertakes no obligation to update forward-looking statements.

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