Cyclo Therapeutics, Inc. 8-K Report: Major Equity Sale of $2.8M in Private Placement

Here are the key insights extracted from the provided financial report (Form 8-K) for Cyclo Therapeutics, Inc.:

Filing Overview:

• Filing Type: 8-K
• Date of Report: September 2, 2020
• Company Name: Cyclo Therapeutics, Inc.
• State of Incorporation: Florida
• Commission File Number: 000-25466
• IRS Employer Identification Number: 59-3029743
• Principal Executive Office Address: 6714 NW 16th Street, Suite B, Gainesville, Florida, 32563
• Contact Number: 386-418-8060

Key Events Reported:

• Item 3.02 - Unregistered Sale of Equity Securities:
• Event Date: August 27, 2020
• Private Placement: The company completed a private placement of securities to accredited investors, including several directors and members of management.
• Units Sold: 28,311,140 Units were sold at a price of $0.10 per Unit, resulting in gross proceeds of $2,831,114.
• Composition of Units: Each Unit comprised one share of Common Stock and a seven-year warrant to purchase one share of Common Stock at an exercise price of $0.15 per share.
• Exemption from Registration: The sale was exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and Rule 506 of Regulation D.
• No Financial Advisor: The company did not employ a financial advisor or placement agent for this transaction.

Additional Information:

• The report contains a signature section confirming its authenticity, signed by N. Scott Fine, Chief Executive Officer of Cyclo Therapeutics, Inc.

Summary:

Cyclo Therapeutics, Inc. raised a significant amount of capital through a private placement involving its directors and management, which indicates potential insider confidence in the company’s future. The structure of the deal, including warrants, provides investors with leverage while the company benefits from immediate funds without the need for registration or the involvement of a financial advisor.