Eupraxia Pharmaceuticals closes $80.5-million offering

Executive Summary

• Eupraxia Pharmaceuticals Inc. has closed a public offering of 14,636,363 common shares, including the full exercise of the underwriter's option, generating gross proceeds of approximately $80.5 million (U.S.).
• The shares were sold at a price of $5.50 (U.S.) per share.
• The company intends to use the net proceeds primarily to advance its product pipeline, specifically the development of EP-104GI for eosinophilic esophagitis, including preclinical studies, clinical trials, and regulatory submissions.
• CEO James Helliwell stated the financing capitalizes the company into the first quarter of 2028.

Key Details

• Transaction Structure: Public offering of common shares with full exercise of underwriter option.
• Shares Issued: 14,636,363 common shares.
• Price: $5.50 (U.S.) per common share.
• Gross Proceeds: Approximately $80.5 million (U.S.).
• Underwriters: Cantor Fitzgerald & Co. and LifeSci Capital LLC acted as joint bookrunning managers; Bloom Burton Securities Inc. acted as co-manager.
• Use of Proceeds:
  • Continued advancement of product pipeline (EP-104GI for eosinophilic esophagitis).
  • Completion of preclinical studies and clinical trials.
  • Regulatory submissions and commercial preparation.
  • Manufacturing scale-up activities.
  • 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.
• Regulatory Filings:
  • U.S. Registration Statement on Form F-10 (declared effective Feb. 7, 2024).
  • Canadian Short Form Base Shelf Prospectus (dated Feb. 5, 2024).
  • Preliminary and final prospectus supplements filed with securities commissions in Canada (except Quebec) and the SEC.

Notable Quotes

• "This financing represents a pivotal milestone for Eupraxia, enabling us to accelerate the development of EP-104GI for eosinophilic esophagitis and advance toward our upcoming phase 2b clinical readout, plus other key clinical and regulatory milestones," said James Helliwell, chief executive officer of Eupraxia. "The strong participation from leading life science focused investors validates both our strategy and technology and with this financing, we believe we are now capitalized into the first quarter of 2028, providing the resources and flexibility to deliver on our vision."