Eupraxia Pharmaceuticals closes $63.2M (U.S.) offering

Executive Summary

• Eupraxia Pharmaceuticals Inc. has closed a public offering of 7,607,145 common shares and prefinanced warrants, including the full exercise of the underwriter's option, generating gross proceeds of approximately $63.2 million (U.S.).
• The company intends to use the net proceeds primarily to advance its lead candidate, EP-104GI, for eosinophilic esophagitis through Phase 2 and Phase 3 clinical trials, as well as to expand clinical studies into other gastrointestinal indications and fund general corporate purposes.
• The offering was priced at $7.00 per common share and $6.99999 per prefinanced warrant, with Cantor Fitzgerald and LifeSci Capital acting as joint bookrunning managers.

Key Details

• Gross Proceeds: Approximately $63.2 million (U.S.), before deducting underwriting commissions and estimated expenses.
• Shares Issued: 7,607,145 common shares.
• Warrants Issued: Prefinanced warrants to purchase up to 1,428,571 common shares.
• Price Per Share: $7.00 (U.S.) per common share.
• Price Per Warrant: $6.99999 (U.S.) per prefinanced warrant (calculated as the public offering price less the 0.0001 Canadian-cent exercise price).
• Underwriter Option: The offering included the full exercise of the option to purchase additional shares granted to the underwriters.
• Use of Proceeds:
  • Continued advancement of EP-104GI for eosinophilic esophagitis (preclinical studies, Phase 2 trials, Phase 3 preparations, regulatory submissions, and manufacturing).
  • Commercial/market development activities for eventual product launch.
  • Acceleration/expansion of clinical studies for EP-104GI in additional GI indications (esophageal strictures and fibrostenotic Crohn's disease).
  • Research and development of additional pipeline candidates.
  • Business development initiatives.
  • General corporate purposes (salaries, working capital, leases, administrative expenses, capital expenditures).
  • Expansion of intellectual property portfolio and corporate infrastructure.
• Underwriters: Cantor Fitzgerald and LifeSci Capital (joint bookrunning managers); Bloom Burton and Craig-Hallum (co-managers).
• Regulatory Filings: Made pursuant to a U.S. registration statement on Form F-10 (declared effective Feb. 7, 2024) and a Canadian short form base shelf prospectus (dated Feb. 5, 2024).

Notable Quotes

• "We are pleased to complete this financing, allowing us to significantly expand our pipeline, reach several additional development milestones with EP-104GI for eosinophilic esophagitis, and make meaningful progress towards commercial readiness," said James Helliwell, chief executive officer of Eupraxia. "We appreciate the support from both existing and new investors as we execute our mission and pursue the next phase of growth for Eupraxia."