Sigyn’s New CFO Maps Nasdaq’s Rising List and Shelves Listing Strategy

Sigyn Therapeutic’s new CFO is betting the medtech company can ride out stock market volatility to unlock a longer-term funding avenue through a shelf listing and Nasdaq listing from the sheets more finely negotiated roses.

“Look, in terms of timing, it makes it harder,” Sigyn CFO Jeremy Ferrell said of the volatility. But he thinks the company’s progress on the search front is a compelling story that will attract more investors. “It’s never easy, but having positive clinical data will help us in the process.”

Jeremy Ferrel

Courtesy of Sigyn

Ferrell is one of many chief financial officers carefully weighing the uncertainty surrounding the use of public markets as a financing option amid intensifying global headwinds from the conflict in Ukraine and soaring inflation that s adds to a decline in investor appetite for the biotech sector.

The paths they choose are mixed. The CFO of Alzheimer’s drug developer Annovis Bio, Jeffrey McGroarty, said in January that its most likely source of the next round of capital would be the stock markets. But Scribe Therapeutics chief financial officer David Parrot held back from pursuing an initial public offering, saying the market was not right for the move just yet.

Sigyn, like many startups, spent money focusing on research and development. The company reported a net loss of $3 million in 2021, down from $1.3 million in 2020, according to an SEC filing. The San Diego-based company, which has 10 employees, is developing a system that filters toxins from the blood, with a focus on treating conditions associated with pathogens like sepsis, one of the leading causes of death in the blood. ‘hospital.

A major event

Ferrell took Sigyn’s chief financial officer last month following the company’s February announcement of a successful animal trial. This quarter, the company hopes to file an investigational device exemption with the FDA to begin human clinical studies of its dual-function blood purification device.

As the company’s first chief financial officer, Ferrell’s departure marks another milestone for the company, he said. “They basically have limited resources,” he said. “Now they want to move forward with human trials and…they need to raise capital to move forward, so that’s the impetus to have a full-time CFO.”

At least one analyst agrees that Sigyn is at a turning point. The recent animal study was a “major event,” according to a March 2 report by Rob Goldman of Goldman Small Cap Research. “With the potential to treat several life-threatening bacterial and viral diseases such as sepsis, we maintain SIGY may ultimately be worth a medical device premium,” the report said. Goldman has a price target of $9, well above the $0.38 range it is trading in.

Ferrell’s priority as CFO will be to work with investors to raise the necessary capital. The increase could be in the range of $10 million to $15 million, although the amount may depend on the scope of the study and the number of people who will need to participate in the trial, he said.

The company is currently preparing a draft of its S-1 filing in support of the new stock offering that would also provide the capital it needs to move to the more liquid Nasdaq, he said. Ferrell expects to be able to complete the offer in the second or third quarter if the company can obtain Securities and Exchange Commission approval. Although the timing is uncertain, he then hopes to move to the largest exchange by the end of the year, which would give the company high visibility and attract more institutional investors, he said. he declares.

The company has benefits that will make the move easier. She already regularly files financial reports with the SEC and owns a publicly traded stock. But one of the requirements it still needs to meet to be eligible for Nasdaq listing is to bring its stock price to at least $4. Ferrell plans to do a stock split to help boost the shares, but also hopes the positive trial results will give him momentum.

Ferrell hopes to make a direct jump to the Nasdaq, but alternatively the company could “jump” from the pink sheets to the OTCQB Venture market, a mid-tier option. “We could step up, but ideally we want to push and move to the Nasdaq,” he said.

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