Eupraxia Pharmaceuticals Inc., based in Victoria, BC, and trading under the symbols TSX: EPRX and NASDAQ: EPRX, has announced the successful completion of a non-brokered private placement. The company has issued 8,905,638 Series 1 Preferred shares at a price of C$5.00 per share, raising a total of C$44,528,190. The funds will be directed towards clinical trials for their drug
EP104GI, exploring new research programs, and covering general corporate and operational expenses for Eupraxia and its affiliates.
Eupraxia has also expanded its board of directors with the appointment of Joseph Freedman, a seasoned private equity investor and corporate director with over 25 years of industry experience. Freedman’s extensive background includes an 18-year tenure at
Brookfield Asset Management, where he held various roles such as Vice Chair of Private Equity and General Counsel. He has also been involved in M&A transactions, fund formation, and operations. Freedman now serves as a director for several companies and non-profit organizations, including the Centre for Aging and Brain Health Innovation and Bridgemarq Real Estate Services.
The newly issued Preferred Shares hold seniority over the common shares regarding dividend payments and asset distribution during dissolution or liquidation. These shares are non-voting unless decisions impact their rights. They are convertible to common shares at a one-to-one ratio at the discretion of the holder or automatically under specific conditions, such as if the common shares trade above C$15.00 for a sustained period or if a majority of Preferred Shareholders agree to the conversion.
The Preferred Shares are initially ineligible for dividends but may earn quarterly dividends after three years, subject to shareholder approval. If approved, dividends will be payable in additional Preferred Shares; otherwise, cash dividends will apply. Common shares will not receive dividends while Preferred Shares are outstanding unless approved by the majority of Preferred Shareholders.
Additionally, the shares from this placement are bound by a four-month hold period as per Canadian securities regulations. This announcement does not constitute an offer or solicitation to sell securities in jurisdictions where such activities are prohibited. The securities have not been registered under U.S. securities laws and cannot be sold in the U.S. without appropriate registration or exemption.
In a related move, Eupraxia has terminated its C$12 million convertible debt facility, having never utilized it, thus freeing the company from any obligations under this facility.
Eupraxia Pharmaceuticals Inc. is focused on developing extended-release, locally delivered products to address unmet medical needs using its DiffuSphere™ technology. This technology aims to optimize drug delivery by targeting specific tissues, potentially reducing adverse effects and enhancing the efficacy and longevity of treatments. Eupraxia’s pipeline includes treatments for
pain,
inflammatory gastrointestinal diseases, and potentially other critical areas such as
oncology and
infectious diseases.
Their EP-104GI product is undergoing Phase 1b/2a trials for eosinophilic esophagitis, a condition treated uniquely by injecting the drug into the esophageal wall. Eupraxia has also completed a Phase 2b trial for EP-104IAR, aimed at treating knee osteoarthritis pain, showing promising results. The company continues to develop a range of drug formulations designed to improve on existing treatments.
How to obtain the latest research advancements in the field of biopharmaceuticals?
In the Synapse database, you can keep abreast of the latest research and development advances in drugs, targets, indications, organizations, etc., anywhere and anytime, on a daily or weekly basis. Click on the image below to embark on a brand new journey of drug discovery!
