Investors and financial institutions have been patiently waiting for a cannabis-related company to commence trading on a national exchange like the Nasdaq or New York Stock Exchange. Currently, there are only two cannabis related biotech companies that trade on the Nasdaq. These are GW Pharmaceuticals (GWPH) and INSYS Therapeutics, Inc. (INSY). In the near future, a third cannabis related biotech company will have its initial public offering (IPO) and commence trading on the Nasdaq exchange.
On June 30th, Zynerba Pharmaceuticals, Inc. filed a registration statement on a Form S-1 which is related to the company’s proposed initial public offering. Zynerba’s registration statement is not yet effective and the number of shares to be offered and the price range for the offering have not yet been determined.
Zynerba Pharmaceuticals is a specialty pharmaceutical company focused on developing and commercializing synthetic cannabinoid therapeutics formulated for transdermal delivery. Zynerba is developing two therapeutic candidates based on proprietary transdermal technologies.
Two products in Zynerba’s development pipeline
Zynerba’s development pipeline consists of two preclinical programs studying synthetic cannabinoid therapeutics.
- THC Pro-Drug Patch – ZYN001: ZYN001 is a pro-drug of THC that enables transdermal delivery via a patch. Zynerba is studying ZYN001 in patients with fibromyalgia and peripheral neuropathic pain. Zynerba expects to initiate ZYN001 Phase 1 clinical studies in the second quarter of 2016.
- CBD Gel – ZYN002: ZYN002 is the first and only synthetic CBD formulated as a patient-protected permeation-enhanced gel for transdermal delivery. Zynerba is studying ZYN002 in patients with refractory epilepsy, Fragile X syndrome and osteoarthritis. Zynerba expects to initiate ZYN002 Phase 1 clinical studies in the third quarter of 2015.
In October 2014, Zynerba raised $13 million in funding for the first transdermal cannabinoid therapy. At the time of the capital raise, the company was preparing to initiate Phase 1 clinical studies on ZYN001 and on ZYN002.
Zynerba files registration statement with SEC for its IPO
Zynerba announced that Jefferies LLC and Piper Jaffray & Co. will act as joint book-running managers for the offering. Canaccord Genuity and Oppenheimer & Co. will act as co-managers for the offering.
The offering will be made only by means of a prospectus. When available, a copy of the prospectus relating to the offering may be obtained from: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, or by telephone at 877-821-7388, or by email at Prospectus_Department@Jefferies.com, or by accessing the SEC’s website at www.sec.gov.
We expect Zynerba’s IPO to be a profitable investment due to the strong demand for cannabis related investments from investors and financial institutions. Even though there are more than 300 publicly traded cannabis companies, investors want to invest in companies that trade on a regulated national stock exchange.
Zynerba will fill this need for many investors and we will keep you updated on developments related to its IPO.
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