Eupraxia Pharmaceuticals closes $80.5-million offering

Mr. James Helliwell reports EUPRAXIA PHARMACEUTICALS ANNOUNCES CLOSING OF US$80.5 MILLION PUBLIC OFFERING INCLUDING FULL EXERCISE OF UNDERWRITER OPTION Eupraxia Pharmaceuticals Inc. has successfully closed its previously announced public offering of 14,636,363 common shares of the company, which includes the full exercise of the option to purchase additional shares granted to the underwriters, at a price to the public of $5.50 (U.S.) per common share, for gross proceeds of approximately $80.5-million (U.S.), before deducting the underwriting commissions and estimated expenses incurred in connection with the offering. "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 andm 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." Cantor and LifeSci Capital acted as joint bookrunning managers for the offering. Bloom Burton also acted as co-manager for the offering. As previously stated, the company intends to use the net proceeds from the offering primarily for the continued advancement of its product pipeline, including the completion of continuing preclinical studies and clinical trials, regulatory submissions, and associated commercial preparation and manufacturing scale-up activities. A portion of the proceeds will also 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 was 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 and a final prospectus supplement relating to and describing the terms of the offering were 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 Fitzgerald & Co., attention: capital markets, 110 East 59th St. (sixth floor), New York, N.Y., 10022, or by e-mail at [email protected]; from LifeSci Capital LLC, at 1700 Broadway (40th floor), New York, N.Y., 10019, or by e-mail at [email protected]; or from Bloom Burton Securities Inc. at [email protected]. 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 micro-sphere technology, is designed to facilitate targeted drug delivery of both existing and novel drugs. We seek Safe Harbor.