SOLANA BEACH, Calif. - Evoke Pharma, Inc. (NASDAQ: NASDAQ:EVOK), a pharmaceutical company specializing in gastrointestinal treatments, has announced the pricing of an underwritten public offering that could yield up to $30M in gross proceeds. The offering, led by Nantahala Capital Management and including other key investors, is set to close around February 13, 2024, contingent on customary closing conditions.
The company's offering comprises approximately 11 million shares of common stock or pre-funded warrants, along with three series of additional warrants, each exercisable at $0.68 per share. The Series A Warrants have a five-year term, Series B Warrants have a nine-month term, and Series C Warrants also have a five-year term but are contingent on the exercise of Series B Warrants and subject to an early expiration of nine months.
The initial funding from the offering amounts to about $7.5M before deductions for underwriting discounts, commissions, and estimated offering expenses. If all warrants are exercised in full, Evoke Pharma could potentially receive the total gross proceeds of $30M, including the initial funding.
Evoke Pharma intends to allocate the net proceeds for general corporate purposes and working capital. Additionally, the company may use a portion of the funds to invest in or acquire complementary businesses, technologies, products, or assets, although there are currently no specific plans to do so.
Joint book-running managers for the offering are Craig-Hallum and Laidlaw & Company (UK) Ltd. The securities are being offered pursuant to a previously filed and SEC-effective registration statement, with a prospectus supplement to be filed and made available on the SEC's website.
Evoke Pharma is known for developing and marketing GIMOTI®, a nasal spray formulation of metoclopramide for diabetic gastroparesis treatment, a condition where the stomach empties contents too slowly, leading to serious gastrointestinal symptoms.
This public offering announcement is based on a press release statement and includes forward-looking statements regarding the offering's completion, timing, size, and the anticipated use of proceeds. These statements are subject to market conditions, customary closing conditions, and the possibility that investors may not exercise the issued warrants.
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