Eupraxia Pharmaceuticals Secures $70M in Public Offering
Eupraxia Pharmaceuticals Achieves Milestone with Public Offering
VICTORIA, British Columbia - Eupraxia Pharmaceuticals Inc. ("Eupraxia" or the "Company") (NASDAQ:EPRX) (TSX:EPRX), a pioneering clinical-stage biotechnology firm, has announced a significant public offering that is set to raise approximately $70 million. This comes from the pricing of 12,727,273 common shares at a public price of $5.50 each. The support from investors is a strong vote of confidence in Eupraxia's innovative Diffusphere™ technology, which aims to revolutionize drug delivery in areas with unmet medical needs.
Details of the Offering
The funding announced is expected to close soon, with a standard 30-day option for underwriters to purchase up to an additional 1,909,090 common shares. The majority of these shares are being sold by Eupraxia itself, underlining its commitment to enhancing shareholder value while pushing forward its mission in drug delivery technology.
Strategic Allocation of Proceeds
Eupraxia has outlined a clear intent on how it plans to utilize the proceeds from this public offering. The funds will primarily be directed towards advancing its product pipeline. This includes essential preclinical studies and clinical trials, together with regulatory submissions needed for bringing innovative solutions to market. Other portions of the funding may support business development initiatives and infrastructure enhancements to support the company's growth trajectory.
Supports Product Development
The company’s research focuses on the development of extended-release products designed to improve therapeutic effectiveness in challenging medical areas. The funds will further allow Eupraxia to enhance its intellectual property portfolio, ensuring robust protection for innovations stemming from its unique Diffusphere™ technology.
Management Team at the Helm
The Offering is being facilitated by seasoned underwriters including Cantor and LifeSci Capital serving as joint book-running managers. Bloom Burton also joins as a co-manager, ensuring experienced oversight to navigate this public financing process. The management team's expertise is crucial as they look ahead to an anticipated increase in activity surrounding regulatory approvals and clinical advancement.
Regulatory Framework and Compliance
The Offering adheres to a U.S. registration statement on Form F-10, which received the green light from the U.S. Securities and Exchange Commission (SEC) earlier this year. Eupraxia is also compliant with existing Canadian regulatory frameworks, having filed necessary documentation that includes a preliminary prospectus. This level of compliance will instill further confidence in potential investors.
About Eupraxia Pharmaceuticals Inc.
Eupraxia is dedicated to addressing significant health challenges through locally delivered extended-release therapeutics. The Company’s innovative Diffusphere™ technology allows for targeted drug delivery, making it a promising option in the dynamic realm of biopharmaceuticals. By focusing on high unmet medical needs, Eupraxia positions itself as a player to watch as it navigates the complexities of drug development.
Commitment to Innovation
The advances Eupraxia is making with its pipeline are underpinned by a commitment to scientific excellence and a strategic vision for the future. This offering lays the groundwork for Eupraxia to continue its mission, delivering on the promise of innovative therapies that may one day significantly change the treatment landscape for many patients.
Frequently Asked Questions
What is the main purpose of the offering?
The proceeds from the offering will primarily support advancements in Eupraxia's product pipeline including clinical trials and regulatory submissions.
Who is managing the public offering?
Cantor and LifeSci Capital are the joint book-running managers, with Bloom Burton acting as co-manager.
How does Diffusphere™ technology work?
Diffusphere™ technology is a polymer-based micro-sphere platform designed to facilitate extended and controlled drug delivery, targeting therapeutic areas with high unmet medical needs.
What are the expected outcomes of the offering?
Eupraxia aims to enhance its product pipeline and expand its research capabilities, paving the way for innovative drug solutions.
Who should be contacted for investor inquiries?
For investor inquiries, you can contact Danielle Egan or Kevin Gardner from Eupraxia Pharmaceuticals Inc.
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