Eupraxia Pharmaceuticals closes $80.5 million public offering

Eupraxia Pharmaceuticals Inc. (NASDAQ: EPRX) (TSX: EPRX) completed its public offering of 14,636,363 common shares at $5.50 per share, raising gross proceeds of approximately $80.5 million before deducting underwriting commissions and expenses. The offering included the full exercise of the underwriters' option to purchase additional shares.

The Victoria, British Columbia-based clinical-stage biotechnology company said it plans to use the net proceeds primarily for advancing its product pipeline, including completion of ongoing preclinical studies and clinical trials, regulatory submissions, and commercial preparation activities. The company also intends to allocate funds for research and development of additional pipeline candidates, business development initiatives, and general corporate purposes.

"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, CEO of Eupraxia. The company expects the financing to provide capitalization into the first quarter of 2028.

Cantor and LifeSci Capital served as joint book-running managers for the offering, with Bloom Burton acting as co-manager. The offering was conducted under a U.S. registration statement on Form F-10 that became effective in February 2024 and the company's existing Canadian short form base shelf prospectus dated February 2024.

Eupraxia develops locally delivered, extended-release pharmaceutical products using its proprietary Diffusphere technology, designed for targeted drug delivery applications.

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