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VICTORIA
BC, April 20, 2022 /CNW/ - Eupraxia
Pharmaceuticals Inc. ("Eupraxia" or the "Company")
(TSX: EPRX), a Phase 2 clinical-stage biotechnology company with an
innovative drug delivery technology platform, today announced that
it has closed its previously announced overnight marketed public
offering of units ("Units") of the Company (the
"Offering"). Pursuant to the Offering, Eupraxia issued
7,150,550 Units at a price of C$2.05
per Unit (the "Offering Price") and 181,000 Warrants (as
defined below) at a price of C$0.30
per Warrant for aggregate gross proceeds of approximately
C$14.7 million.
"Completion of this financing further strengthens the balance
sheet and extends our cash runway to Q4, 2023," said Dr.
James Helliwell, CEO of Eupraxia.
"By raising this capital, we satisfied the requirement to raise an
additional $10 million in net new
capital under our contingent convertible debt agreement with
Silicon Valley Bank ahead of the June 30,
2022 deadline. We are grateful for the strong investor
support demonstrated in this financing."
Each Unit consists of one common share in the capital of the
Company (each, a "Common Share") and one common share
purchase warrant of the Company (each, a "Warrant"). Each
Warrant entitles the holder thereof to acquire one Common Share at
an exercise price of C$3.00 per
Common Share for a period of 48 months following the closing date
of the Offering, being April 20, 2022
(the "Closing Date"). The Warrants will commence trading
today on the Toronto Stock Exchange under the symbol
"EPRX.WT.A".
The Company granted to the Agents an option (the
"Over-Allotment Option") to purchase up to an additional
944,550 Units, at the Offering Price. The Over-Allotment Option is
exercisable in whole or in part to purchase Common Shares,
Warrants, Units, or any combination thereof. The Agents partially
exercised the Over-Allotment Option to purchase an additional
763,550 Units and 181,000 Warrants on the date hereof.
The Units were issued pursuant to an agency agreement (the
"Agency Agreement") between the Company and Raymond James
Ltd., as lead agent and sole bookrunner, BMO Capital Markets
and Canaccord Genuity Corp. (collectively, the
"Agents").
The Offering was completed in each of the provinces of
Canada, except Québec, pursuant to
a prospectus supplement dated April 14,
2022 (the "Prospectus Supplement").to the Company's
base shelf prospectus dated January 10,
2022 (the "Base Shelf Prospectus") and in
the United States on a private
placement basis.
The Company intends to use the net proceeds from the Offering
towards the Company's ongoing research & development activities
including the clinical development of EP-104IAR, other preclinical
and clinical targets as well as for working capital and general
capital purposes.
Copies of the Prospectus Supplement, accompanying Base Shelf
Prospectus and Agency Agreement relating to the Units are available
under the Company's profile on SEDAR at www.sedar.com.
No securities regulatory authority has either approved or
disapproved of the contents of this press release. This press
release does not constitute an offer to sell or the solicitation of
an offer to buy nor has there been any sale of the securities in
the United States or in any other
jurisdiction in which such offer, solicitation or sale would be
unlawful. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended, and may
not be offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements thereunder.
About Eupraxia Pharmaceuticals Inc.
Eupraxia is a clinical-stage biotechnology company focused on
the development of locally delivered, extended-release alternatives
to currently approved drugs. Each of Eupraxia's product candidates
has the potential to address therapeutic areas with high unmet
medical need and strives to provide improved patient benefit by
delivering targeted, long-lasting activity with fewer side
effects.
Eupraxia's lead product candidate, EP-104IAR, is currently in
Phase 2 development for the treatment of pain due to OA of the
knee. In addition to EP-104IAR, Eupraxia is developing a pipeline
of earlier-stage long-acting formulations. Potential pipeline
candidates include a range of drugs for indications such as
postsurgical pain (EP-105), and post-surgical site infections
(EP-201), each designed to improve on the activity and tolerability
of approved drugs. For further details about Eupraxia, please visit
the Company's website at: www.eupraxiapharma.com.
Forward-Looking Statements:
Some statements in this release may contain forward-looking
statement and forward looking information within the meaning of
Canadian securities laws. All statements, other than of historical
fact, that address activities, events or developments that the
Company believes, expects or anticipates will or may occur in the
future (including, without limitation, statements regarding to the
Offering generally, and the use of the proceeds thereof, are
forward-looking statements. Forward-looking statements are
generally, but not always, identifiable by use of the words "may",
"will", "should", "continue", "expect", "anticipate", "estimate",
"believe", "intend", "plan" or "project" or the negative of these
words or other variations on these words or comparable terminology.
Forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond the Company's ability to
control or predict, that may cause the actual results of the
Company to differ materially from those discussed in the
forward-looking statements. Factors that could cause actual results
or events to differ materially from current expectations include,
among other things, without limitation, uncertainties related to
the terms, the inability of the Company to obtain sufficient
financing to execute the Company's business plan; competition;
regulation and anticipated and unanticipated costs and delays, the
success of the Company's research and development strategies,
including the success of this product or any other product, the
applicability of the discoveries made therein, the successful and
timely completion and uncertainties related to the regulatory
process, the timing of clinical trials, the timing and outcomes of
regulatory or intellectual property decisions and other risks
disclosed in the Company's public disclosure record on file with
the relevant securities regulatory authorities on SEDAR at
www.sedar.com. Although the Company has attempted to identify
important factors that could cause actual results or events to
differ materially from those described in forward-looking
statements, there may be other factors that cause results or events
not to be as anticipated, estimated or intended. Readers should not
place undue reliance on forward-looking statements. The
forward-looking statements and information included in this news
release are made as of the date of this news release and the
Company does not undertake an obligation to publicly update such
forward-looking statements to reflect new information, subsequent
events or otherwise unless required by applicable securities
legislation.
SOURCE Eupraxia Pharmaceuticals Inc.