Chromocell Issues Letter to Stockholders from Chief Executive Officer

FREEHOLD, N.J., April 09, 2024 (GLOBE NEWSWIRE) -- Chromocell Therapeutics Corporation (“Chromocell”, or the “Company”), (NYSE American: CHRO), a pioneer in the development of non-opioid pain treatment therapeutics, today announced that its Chief Executive Officer, Frank Knuettel, has issued the following letter to stockholders:

Dear Fellow Stockholders,

With my inaugural letter to stockholders, I am pleased to provide an update on our recent initial public offering (“IPO”), share our mission, outline the current status of our development programs, and discuss our growth and operational plans.

We successfully closed our IPO on February 21, 2024, raising gross proceeds of approximately $6.6 million. Notably, almost all shares of common stock held by 5% holders, directors and officers of the Company prior to the IPO are subject to formal lock-up agreements.

Additional key highlights since the close of the IPO include:

• All pre-IPO outstanding shares of Series A Convertible Preferred Stock (“Series A Preferred Stock”) were converted into shares of common stock at a price of $4.98 per share.

• All pre-IPO debt under our senior secured convertible notes, in the principal amount of approximately $587,000, was converted into shares of common stock at $4.80 per share.

• We transferred $2.2 million in liabilities to Chromocell Corporation in exchange for 2,600 shares of Series C Convertible Redeemable Preferred Stock (“Series C Preferred Stock”). The Series C Preferred Stock is the only remaining outstanding series of the Company’s preferred stock, has no dividend or voting rights and is convertible at a fixed price of $7.50 per share.

• Our CEO has agreed to further defer a considerable portion of his accrued compensation, affirming the belief in Chromocell’s mission.

These and other actions the Company have taken since the close of the IPO have removed approximately $2.7 million of liabilities from the balance sheet.

We expect that the net proceeds from our IPO will allow us to focus on accelerating the development of a portfolio of non-opioid pain treatments and related therapies. Opioids effectively treat pain, but their use often leads to serious side effects, including addiction and mortality. Despite the explosive growth of opioid addiction and the ongoing suffering of many patients, there has been a lack of new pain treatment therapies. We intend to build a robust pipeline of products to address several pain indications with molecules that show no addictive or euphoric properties.