Eupraxia Pharmaceuticals raises $63.2M in public offering

Eupraxia Pharmaceuticals Inc. (NASDAQ: EPRX) (TSX: EPRX) completed a public offering that raised gross proceeds of approximately $63.2 million before underwriting commissions and expenses, according to a company statement.

The Victoria, British Columbia-based biotechnology company sold 7,607,145 common shares at $7.00 per share and pre-funded warrants to purchase up to 1,428,571 common shares at $6.99999 per warrant. The offering included the full exercise of the underwriters' option to purchase additional shares.

Cantor and LifeSci Capital served as joint book-running managers for the offering, while Bloom Burton and Craig-Hallum acted as co-managers.

The company stated it intends to use the net proceeds primarily for advancing EP-104GI for eosinophilic esophagitis, including completion of ongoing preclinical studies and Phase 2 clinical trials, and preparations for a Phase 3 clinical trial. The funds will also support manufacturing activities and commercial development preparations.

Additional planned uses include accelerating clinical studies with EP-104GI in other gastrointestinal conditions such as esophageal strictures and fibrostenotic Crohn's disease. The company also plans to allocate portions of the proceeds to research and development of pipeline candidates, business development initiatives, and general corporate purposes including employee salaries, working capital, and administrative expenses.

"We are pleased to complete this financing, allowing us to significantly expand our pipeline, reach several additional development milestones with EP-104GI for eosinophilic esophagitis, and make meaningful progress towards commercial readiness," said James Helliwell, CEO of Eupraxia.

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

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