Zylö Therapeutics Closes $5.225 Million Series B Financing

GREENVILLE, SC, June 03, 2022 (GLOBE NEWSWIRE) -- Zylö Therapeutics Inc., dedicated to developing a transformational drug-delivery platform, announced that it has raised $5.225 million in its Series B financing. 

The Series B round was led by a consortium of seasoned investors, spearheaded by James Cordes, who recently joined the Zylö board of directors. Other key participants were: (i) VentureSouth (which led the Series A round) which invested more than $1.3 million in the Series B round; (ii) the New York Angels, an angel group that has played a prominent role in both the Series A round and the Series B round; (iii) SC Launch Inc., an affiliate of the South Carolina Resource Authority (SCRA)—a non-profit corporation chartered by the state that helps fuel South Carolina’s innovation economy—which also played a significant role in both rounds; (iv) the Boston Harbor Angels, another group that showed solid support in both rounds; and (v) new investors like the Cowtown Angels, based in Ft. Worth, and the Harvard Business School Alumni Angels of Greater New York. 

In addition, insiders and their affiliates/associates invested slightly over $1.0 million in the Series B round, extending their total invested to over $2.5 million. 

The Series B round was oversubscribed, as was the $4.0 million Series A round, which closed in 2019. The Series B preferred shares were issued at $0.50 per share, 47% higher than the $0.34 per-share price of the Series A shares. 

Proceeds from the funding will be used to complete several high value-add internal research projects, to further scale up the manufacturing process of the company’s Z-pod^® delivery particles, and to fully implement ISO-9001 and cGMP quality systems. 

Charles Hinkle, Zylö CFO, commented, “The Series B funds will extend our runway and hedge against the risk of a recession over the next two years, while simultaneously financing investments that will accelerate growth.” 

Stated Scott Pancoast, Zylö CEO and founder, “We appreciate the confidence demonstrated by new and existing investors in the potential of our underlying Z-pod^™ technology and our leading product candidates. We are showing great progress with our erectile dysfunction program and our cutaneous lupus program, and we hope to share exciting news soon about prospective partners that are conducting human studies to demonstrate Zylö’s technology can help combat aging, hyperpigmentation, acne, and diabetic foot ulcers.” 

About Zylö Therapeutics: Zylö has developed the Z-pod^® technology platform, a disruptive topical delivery system that extends the duration of effect, improves the targeting, and enhances the product performance of many therapeutic and cosmetic agents. Notably, the Z-pod^® technology can also be adapted to provide sustained topical delivery of nitric oxide for multiple therapeutic indications. For more details, please visit our website, www.zylotherapeutics.com, and follow us on Twitter (@ZyloTherapies).