SeedInvest, a full-stack investment crowdfunding platform, reports that a current securities offering is the largest Reg CF issuer ever on its platform.
While many offerings on SeedInvest are listed under Reg A+ and Reg D, SeedInvest also leverages Reg CF (Regulation Crowdfunding), an exemption that allows firms to raise up to $5 million from both accredited and non-accredited investors.
According to SeedInvest, Cytonics – a biopharmaceutical company developing novel therapies for osteoarthritis, has raised $2.7 million to date, backed by 1340 individual investors. The offering page indicates that investors are purchasing “tiered preferred equity” at a pre-money valuation of $58.9 million. The tiered structure provides time-based discounts, so earlier investors get in at a lower price.
The offering is a side-by-side, meaning the Reg CF offering is partnered with a Reg D offering, available for accredited investors only.
Cytonics has created a “genetically modified variant of the naturally occurring A2M blood protein” that may inhibit the process that degrades cartilage in arthritic joints. The treatment is said to be the first and only therapy that targets its root causes.
Cytonics is hoping to receive FDA approval by preparing for Phase 1 human clinical trials starting in Q1 of 2023.
The company has raised over $18 million in prior rounds, including $4 million from Synthes, a Johnson & Johnson company.
The funding round has already topped its goal and is expected to close soon.
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