Eupraxia Pharmaceuticals Secures C$44.5 Million Through Shares
Eupraxia Pharmaceuticals Secures C$44.5 Million Through Shares
Eupraxia Pharmaceuticals Inc. (NASDAQ: EPRX) has successfully completed a significant private placement, garnering an impressive C$44.5 million. This remarkable achievement involved the issuance of 8,905,638 Series 1 Preferred shares sold at C$5.00 each. This financial boost will support Eupraxia in its ongoing mission to revolutionize drug delivery technology, particularly through its innovative DiffuSphere™ platform.
Utilizing Funds for Impacts in Healthcare
The newly acquired funds will directly contribute to advancing clinical trials for the company’s flagship product, EP104GI, designed to treat eosinophilic esophagitis. Furthermore, the resources will aid in the initiation of research programs for new candidates as well as support the general corporate and working capital needs of Eupraxia and its subsidiaries.
New Board Member Appointment
As part of this transition, Eupraxia has welcomed Mr. Joseph Freedman to its board of directors. Mr. Freedman brings over 25 years of extensive industry experience, notably as a private equity investor and corporate director. His previous tenure at Brookfield Asset Management saw him excel in strategic roles, including Vice Chair of Private Equity and Partner responsible for M&A transactions. His insight and expertise will be invaluable in guiding the company towards its goals.
Details on the Series 1 Preferred Shares
The Series 1 Preferred Shares boast a senior class ranking related to dividend payments and asset distribution upon liquidation compared to common shares. These shares are structured to allow conversion into common shares at the holder’s discretion, as well as automatic conversion under specified market conditions. This flexibility enhances their attractiveness as an investment.
Dividends and Shareholder Rights
Although dividends are not initially applicable, those Preferred Shares unconverted by the third anniversary of the Private Placement will become entitled to quarterly dividends, reflecting a commitment to value for shareholders. Importantly, the series allows for one representative from the Preferred Shareholders to be nominated for the board annually, ensuring their voice is represented within executive decisions.
Strengthening Financial Structure
Additionally, Eupraxia has terminated a previously established C$12 million convertible debt facility. This decision underscores the company’s robust financial standing and its strategic focus on equity financing to support its growth trajectory.
About Eupraxia Pharmaceuticals Inc.
Eupraxia Pharmaceuticals aims to innovate the biotechnology sector with locally delivered, extended-release therapies. Central to this mission is the proprietary DiffuSphere™ technology, designed to enhance targeted drug delivery while reducing adverse effects. This delivery mechanism promises safety and precision, setting Eupraxia apart as it ventures into various therapeutic arenas like pain relief, inflammatory diseases, and even oncology.
Current Progress with Clinical Trials
Eupraxia is currently advancing its EP-104GI through Phase 1b/2a clinical trials, known as the RESOLVE trial. This innovative approach to treatment involves injecting the drug into the esophageal wall, which is a game-changer in delivering localized therapeutic effects. Meanwhile, the Phase 2b SPRINGBOARD trial for EP-104IAR has recently met its primary endpoint, further establishing Eupraxia's commitment to effective pain management solutions.
Frequently Asked Questions
What is the primary use of the funds raised by Eupraxia?
The funds will primarily support clinical trials for EP104GI and new research initiatives while covering general corporate and operational expenses.
Who has joined Eupraxia's board of directors?
Joseph Freedman has joined the board, contributing substantial expertise from his extensive career in private equity and law.
What are the terms of the Series 1 Preferred Shares?
The Preferred Shares are non-voting, convertible into common shares, and will become eligible for dividends after three years, pending shareholder approval.
What recent changes were made regarding Eupraxia's debt facilities?
The company has terminated its C$12 million convertible debt facility, indicating a shift toward equity financing.
What potential therapeutic applications does Eupraxia explore?
Eupraxia is focused on applications in pain management, inflammatory diseases, and is considering extensions into oncology and infectious diseases with its innovative delivery platform.
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