Eupraxia Pharmaceuticals Inc. reported the closing of a public offering that raised roughly $63.2 million in gross proceeds and led to a 4.7% gain in its shares on the day the company announced the transaction.
The offering consisted of 7,607,145 newly issued common shares priced at $7.00 apiece. In addition, the deal included pre-funded warrants enabling purchase of up to 1,428,571 common shares at $6.99999 per warrant. The underwriters exercised their option in full to acquire additional shares as part of the placement.
Cantor and LifeSci Capital acted as joint book-running managers for the financing, while Bloom Burton and Craig-Hallum served as co-managers.
Use of proceeds
The company said net proceeds will be used primarily to advance EP-104GI for the treatment of eosinophilic esophagitis. Specific uses cited include completion of ongoing preclinical studies and Phase 2 clinical trials, and preparatory work for a Phase 3 clinical trial. Eupraxia also identified regulatory submissions and manufacturing activities among the intended allocations.
Beyond eosinophilic esophagitis, the company plans to accelerate clinical evaluation of EP-104GI in other gastrointestinal indications, explicitly naming esophageal strictures and fibrostenotic Crohn's disease. A portion of the funds will be directed toward research and development of additional pipeline candidates, business development efforts, and general corporate purposes.
"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.
The company highlights its proprietary Diffusphere technology platform, which it says is designed to optimize localized, controlled drug delivery for therapeutic areas with substantial unmet need.
Investors reacted positively to the transaction, with the company's shares climbing in response to the announcement. The financing provides Eupraxia with additional capital to support multiple stages of clinical development and preparatory activities aimed at advancing EP-104GI and expanding the company's pipeline.