Cardiol Therapeutics (CRDL) Registration Filing summary

Company overview and business model

• Clinical-stage life sciences company focused on anti-inflammatory and anti-fibrotic therapies for heart diseases, with lead candidate CardiolRx (cannabidiol) in clinical development for recurrent pericarditis and acute myocarditis.

• CardiolRx is being evaluated in Phase II studies (MAVERIC-Pilot for recurrent pericarditis and ARCHER for acute myocarditis), with Orphan Drug Designation granted by the FDA for pericarditis.

• Developing a novel subcutaneous cannabidiol formulation for heart failure, targeting a large unmet need with significant healthcare costs.

• Common Shares are listed on TSX and Nasdaq under the symbol "CRDL".

Financial performance and metrics

• As of March 31, 2024: cash and cash equivalents of $28.6 million, share capital of $151.1 million, and a deficit of $151.8 million.

• Negative operating cash flow in recent years, with ongoing negative cash flows from operations.

• 69,391,470 Common Shares issued and outstanding as of the prospectus date.

Use of proceeds and capital allocation

• Net proceeds will be used to advance business objectives, fund operations, working capital, repay debt, discretionary capital programs, and potential acquisitions.

• Estimated costs for key milestones: $500,000 to complete Phase II MAVERIC-Pilot (H2 2024), $20 million for Phase III pericarditis study, $5 million for Phase II ARCHER (Q4 2024), $10 million for Phase III ARCHER, $4 million to advance CRD-38, $2.5 million for Phase I CRD-38, and $10 million for Phase II CRD-38.

• Additional milestones may require further financing from licensing, partnerships, grants, or corporate finance arrangements.