​Evelo Biosciences Inc. (EVLO) Prices 4.5M Share Common Offering at $15/Sh

Evelo Biosciences, Inc. (NASDAQ: EVLO) today announced the pricing of an underwritten public offering of 4,500,000 shares of its common stock, at a public offering price of $15.00 per share, before underwriting discounts and commissions. Evelo also granted the underwriters a 30-day option, solely to cover over-allotments, if any, to purchase up to an additional 675,000 shares of its common stock. The gross proceeds from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $67,500,000 million, excluding any exercise of the underwriters' option to purchase additional shares. All of the shares in the offering are to be sold by Evelo.

Morgan Stanley, Cowen and BMO Capital Markets are acting as joint book-running managers for the offering. The offering is expected to close on or about February 2, 2021, subject to customary closing conditions.

Evelo intends to use the net proceeds from the offering, in addition to its existing cash resources, for the following purposes: (i) continue the development of EDP1815 in a Phase 2 trial in psoriasis and initiate a Phase 2 trial of EDP1815 in atopic dermatitis; (ii) prepare to advance EDP1815 in multiple Phase 3 trials in psoriasis and atopic dermatitis, upon receipt of positive Phase 2 data; (iii) continue the Phase 2 and Phase 2/3 clinical trials of EDP1815 for the treatment of hyperinflammation caused by SARs-CoV-2; (iv) advance EDP1867 in a Phase 1b trial in atopic dermatitis; (v) progress its first bacterial extracellular vesicle product candidates into the clinic, including EDP2939 for inflammation and EDP1908 for oncology; (vi) other research and development activities for additional product candidates, including advancing additional oral product candidates through preclinical development across therapeutic areas; and (vii) the remainder, if any, for working capital and other general corporate purposes.

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