IGC Pharma, Inc. (NYSE American: IGC) completed a private placement of 779,997 shares of its common stock at $0.30 per share, generating gross proceeds of approximately $234,000 before offering expenses. The capital raise is earmarked for the company’s Phase 2 CALMA trial of its cannabinoid‑based Alzheimer’s candidate IGC‑AD1 and for general corporate purposes.
The transaction comes as IGC’s cash burn remains high, with a reported net loss of $1.821 million for the quarter ended September 30 2025 and a $7.1 million loss for the fiscal year ended March 31 2025. The company’s cash balance was $1.105 million at that date, and it has a $12 million credit line from O Bank that is largely used as an overdraft. The $234,000 infusion extends the runway by only a few weeks, underscoring the need for additional financing before the CALMA trial concludes.
Enrollment in the CALMA trial reached 65 % of the target by December 2025, with full enrollment expected in early 2026. The trial is scheduled to complete in the first half of 2026, after which IGC will seek to publish Phase 2 results and pursue a larger funding round or partnership to support Phase 3 development.
CEO Ram Mukunda highlighted that the new investors are “sophisticated, long‑term” participants who bring more than capital, describing them as partners and ambassadors. The company’s strategy is to use the modest raise to bridge the gap to the next major milestone while maintaining momentum in its AI‑driven drug discovery platform and expanding its pipeline beyond IGC‑AD1.
The equity offering signals that IGC remains in a cash‑constrained position, but it also demonstrates the company’s ability to attract capital for a high‑profile Alzheimer’s program. The dilution from the new shares will reduce existing shareholders’ ownership, but the infusion is a necessary short‑term measure that keeps the CALMA trial on track and preserves the company’s ability to pursue future growth opportunities.
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