CervoMed Inc. (NASDAQ: CRVO) announced a private placement financing that will generate approximately $10.5 million in gross proceeds before fees and expenses. The clinical-stage biotechnology company said the funding will extend its cash runway into the second quarter of 2027.

The financing includes participation from institutional healthcare investors and company insiders, including board chair Joshua Boger, founder of Vertex Pharmaceuticals, and trusts related to CEO John Alam and board member Sylvie Grégoire.

CervoMed plans to use the proceeds to pursue a strategic partnership for advancing its drug candidate neflamapimod into Phase 3 development for dementia with Lewy bodies. The company received alignment from the FDA in November 2025 and from UK and European regulators in January 2026 on a potential registration path for the treatment.

The private placement involves selling 3.36 million units at $3.14 each, with each unit containing common stock or pre-funded warrants plus two series of warrants. Additional proceeds of up to $21.7 million could be generated if all warrants are exercised for cash.

The company expects several clinical milestones over the next six months, including 24-week biomarker and clinical data from a Phase 2a trial evaluating neflamapimod in nonfluent variant primary progressive aphasia and initiation of the EXPERTS-ALS Phase 2a trial.

Neflamapimod targets neuroinflammation and synaptic dysfunction in age-related brain disorders. The drug has completed Phase 2 trials in dementia with Lewy bodies, showing positive results in patients without Alzheimer's disease co-pathology.

The private placement is expected to close on June 11, 2026, subject to customary closing conditions.