Eupraxia Pharmaceuticals prices up to $41M IPO on TSX

CPE News (2/20/2021) – Eupraxia Pharmaceuticals Inc. has filed its final prospectus for an initial public offering of units. Eupraxia Pharmaceuticals will issue
up to 5,125,000 units at a price of $8.00 per unit for gross proceeds of up to $41,000,000 or $47,150,000 if the over-allotment option is exercised in full.

Eupraxia Pharmaceuticals had previously anticipated to issue common shares between $9.00 and $11.00 per share for between 5,555,555 and 4,545,454 common shares for gross proceeds of $50 million.

The Toronto Stock Exchange (TSX) has conditionally approved the listing of both the common shares and the warrants under the symbols “EPRX” and “EPRX.WT,” respectively.

The offering syndicate is being led by Raymond James Ltd. and including BMO Nesbitt Burns Inc. and Canaccord Genuity Corp.

Blake, Cassels & Graydon LLP and Stikeman Elliott LLP are acting as legal counsel to Eupraxia and the underwriters respectively.

Founded in 2012 by Dr. James Helliwell, Vancouver based Eupraxia is a specialty pharmaceutical company, with a focus on advancing a portfolio of drug candidates in the areas of osteoarthritis, post-surgical pain, anti-infectives, oncology and veterinary medicine. Eupraxia’s lead product candidate, EP-104IAR, currently in Phase 2 development, is designed to meet the significant unmet medical need and market demand for long-lasting pain relief for knee osteoarthritis (OA).

Upon completion of the IPO and assuming the maximum number of units are sold pursuant to the offering, Eupraxia will have have 12,865,273 (13,634,023 assuming the
agents’ option is exercised in Units in full) common shares outstanding. Dr. Helliwell and Director John Montalbano will be two listed known largest shareholders, controlling 550,000 common shares and 725,955 common shares respectively.

photo credit: Eupraxia Pharmaceuticals

News Release

Eupraxia Pharmaceuticals Inc. Files Final Prospectus and Announces Pricing of Initial Public Offering

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES/

VICTORIA, BC, March 3, 2021 /CNW/ – Eupraxia Pharmaceuticals Inc. (“Eupraxia” or the “Company”), a Phase 2 clinical-stage biotechnology company with an innovative drug delivery technology platform, today announced that it has obtained a receipt for its final prospectus filed with the securities regulatory authorities in each of the provinces of Canada, other than Quebéc, in connection with the initial public offering (the “Offering”) of 5,125,000 units of the Company (the “Units”) at a price of $8.00 per Unit for gross proceeds to the Company of $41,000,000. A copy of the final prospectus in respect of the Offering is available on SEDAR at www.sedar.com.

Each Unit consists of one common share in the capital of the Company (each a “Common Share”) and one-half of one common share purchase warrant of the Company (each whole common share purchase warrant, a “Warrant”). Each Warrant is exercisable into one common share of the Company (each, a “Warrant Share”) at an exercise price of $11.20 per Warrant Share at any time prior to 5:00 p.m. (Toronto time) on the date that is five years following the closing of the Offering, subject to adjustment in certain events. The Warrants will include an acceleration provision, exercisable at the Company’s option, if the Company’s daily volume weighted average share price is greater than $22.40 for five consecutive trading days.

The Offering is being conducted on a best efforts basis by a syndicate of agents (the “Agents”) led by Raymond James Ltd., as lead agent and sole bookrunner, together with BMO Nesbitt Burns Inc. and Canaccord Genuity Corp.

The Company has granted the Agents an over-allotment option (the “Over-Allotment Option”), exercisable in whole or in part, at the sole discretion of the Agents, at any time up to 30 days following the closing of the Offering, to purchase up to an additional number of Units equal to 15% of the Units sold pursuant to the Offering (the “Agents’ Option Units”) at a price of $8.00 per Agents’ Option Unit to cover the Agents’ over-allocation position, if any, and for market stabilization purposes.

The closing of the Offering is expected to occur on or about March 9, 2021 (the “Closing Date”) and is subject to customary closing conditions, including the receipt of all necessary regulatory approvals. The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of both the Common Shares and the Warrants under the symbols “EPRX” and “EPRX.WT”, respectively. Listing is subject to the Company fulfilling all of the requirements of the TSX on or before May 25, 2021, including distribution of these securities to a minimum number of public shareholders.

No securities regulatory authority has either approved or disapproved of the contents of this press release. The Common Shares, Warrants and Warrant Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, the Common Shares, Warrants and Warrant Shares may not be offered or sold, directly or indirectly, in the United States, except pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful

About Eupraxia

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 osteoarthritis 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 post-surgical pain (EP-105), and post-surgical site infections (EP-201), each designed to improve on the activity and tolerability of approved drugs. Eupraxia is also developing a formulation of EP-104IAR for use in canine and equine osteoarthritis.

NSOURCE Eupraxia Pharmaceuticals Inc.

For further information: For media inquiries, please contact: Vik Peck, Eupraxia Pharmaceuticals Inc., 250.590.3968 ext. 508, vpeck@eupraxiapharma.com; For investor inquiries, please contact: Adam Peeler, on behalf of: Eupraxia Pharmaceuticals Inc., 416.427.1235, adam.peeler@loderockadvisors.com