Eupraxia prices $55-million (U.S.) public offering

Mr. James Meikle reports EUPRAXIA PHARMACEUTICALS ANNOUNCES PRICING OF US$55 MILLION PUBLIC OFFERING OF COMMON SHARES AND PRE-FUNDED WARRANTS Eupraxia Pharmaceuticals Inc. has priced its previously announced public offering of 6,428,574 common shares of the company at a price to the public of $7 (U.S.) per common share and prefinanced warrants to purchase up to 1,428,571 common shares in lieu thereof at a price of $6.99999 (U.S.) per prefinanced warrant, which equals the public offering price per common share less the 0.001-Canadian-cent-per-share exercise price of each prefinanced warrant, for gross proceeds of approximately $55-million (U.S.), before deducting the underwriting commissions and estimated expenses incurred in connection with the offering. Each prefinanced warrant will entitle the holder thereof to acquire one common share of the company at a nominal exercise price of 0.001 Canadian cent per prefinanced warrant share and will not expire until exercised in full. In addition, the company has granted the underwriters a 30-day option to purchase up to an additional 1,178,571 common shares on the same terms and conditions. All of the common shares and prefinanced warrants in the offering are being sold by the company. The offering is expected to close on Feb. 20, 2026, subject to the satisfaction of customary closing conditions, including the listing of the common shares and prefinanced warrant shares to be issued under the offering on the Toronto Stock Exchange and the Nasdaq Capital Market and receipt of any required approvals of the TSX. Cantor Fitzgerald & Co. and LifeSci Capital LLC are acting as joint book-running managers for the offering. Bloom Burton Securities Inc. and Craig-Hallum Capital Group LLCare also acting as co-managers for the offering. The company intends to use the net proceeds from the offering primarily for the continued advancement of EP-104GI for eosinophilic esophagitis, including the completion of continuing preclinical studies and phase 2 clinical trials, preparations for a phase 3 clinical trial, including the related regulatory submissions and manufacturing activities, and to undertake the necessary commercial/market development activities to prepare for the eventual product launch. The company also intends to use a portion of the proceeds to accelerate and expand its plans to pursue clinical studies with EP-104GI in multiple additional gastrointestinal indications, including in esophageal strictures and fibrostenotic Crohn's disease. A portion of the proceeds will be allocated to research and development of additional pipeline candidates, business development initiatives and general corporate purposes, which may include, but are not limited to, employee salaries, working capital, leases for facilities, administrative expenses and capital expenditures. The company may also use a portion of the proceeds to expand its intellectual property portfolio and strengthen its corporate infrastructure to support future growth. The offering is being made pursuant to a U.S. registration statement on Form F-10, declared effective by the U.S. Securities and Exchange Commission (SEC) on Feb. 7, 2024, and the company's existing Canadian short-form base shelf prospectus dated Feb. 5, 2024. A preliminary prospectus supplement relating to and describing the terms of the offering has been filed with the securities commission in all of the provinces and territories of Canada, except Quebec, and with the SEC in the United States, and a final prospectus supplement relating to and describing the terms of the offering will be filed with the securities commissions in all of the provinces and territories of Canada, except Quebec, and with the SEC in the United States. The supplement and accompanying base prospectus contain important detailed information about the offering. The supplement and accompanying base prospectus can be found on SEDAR+ and on EDGAR. Copies of the supplement and accompanying base prospectus may also be obtained from Cantor, attention: capital markets, 110 East 59th St., sixth floor, New York, N.Y., 10022, or by e-mail at [email protected]; LifeSci Capital at 1700 Broadway, 40th floor, New York, N.Y., 10019, or by e-mail at [email protected]; Bloom Burton at [email protected]; or Craig-Hallum Capital Group, attention: equity capital markets, 323 North Washington Ave., Suite 300, Minneapolis, Minn., 55401, or by telephone at 612-334-6300 or by e-mail at [email protected]. Prospective investors should read the supplement and accompanying base prospectus and the other documents the company has filed before making an investment decision. About Eupraxia Pharmaceuticals Inc. Eupraxia is a clinical-stage biotechnology company focused on the development of locally delivered, extended-release products that have the potential to address therapeutic areas with high unmet medical need. Diffusphere, a proprietary, polymer-based microsphere technology, is designed to facilitate targeted drug delivery of both existing and novel drugs. We seek Safe Harbor.