Eupraxia Pharmaceuticals Announces New C$12 Million Convertible Debt Facility
Eupraxia Pharmaceuticals Inc. (TSX: EPRX) (NASDAQ: EPRX) has announced a new C$12 million convertible debt facility with Yabema Capital and other current shareholders. The facility is available for drawdown within 120 days, subject to the release of the existing SVB Facility. The conversion price is set at C$4.84375 per Common Share.
The company has also provided an update on its existing SVB Facility, which matured on June 21, 2024, with a total liability of C$12 million. Eupraxia has fully discharged C$6 million to SVB Innovation Credit Fund and is in discussions for the remaining settlement. The company's cash reserves will be reduced by up to C$12 million to settle this debt.
Including the new convertible debt facility, Eupraxia anticipates having sufficient cash to fund operations until the second quarter of 2025.
Eupraxia Pharmaceuticals Inc. (TSX: EPRX) (NASDAQ: EPRX) ha annunciato una nuova linea di credito convertibile di 12 milioni di dollari canadesi con Yabema Capital e altri attuali azionisti. La linea di credito è disponibile per il prelievo entro 120 giorni, soggetta al rilascio della line di credito SVB esistente. Il prezzo di conversione è fissato a 4,84375 dollari canadesi per azione ordinaria.
L'azienda ha anche fornito un aggiornamento sulla sua esistente linea di credito SVB, che è scaduta il 21 giugno 2024, con una responsabilità totale di 12 milioni di dollari canadesi. Eupraxia ha completamente rimborsato 6 milioni di dollari canadesi al SVB Innovation Credit Fund ed è in trattative per il saldo rimanente. Le riserve di cassa dell'azienda saranno ridotte di fino a 12 milioni di dollari canadesi per saldare questo debito.
Includendo la nuova linea di credito convertibile, Eupraxia prevede di avere liquidità sufficiente per finanziare le operazioni fino al secondo trimestre del 2025.
Eupraxia Pharmaceuticals Inc. (TSX: EPRX) (NASDAQ: EPRX) ha anunciado una nueva línea de deuda convertible de 12 millones de dólares canadienses con Yabema Capital y otros accionistas actuales. La línea de crédito está disponible para su disposición dentro de los 120 días, sujeta a la liberación de la línea de crédito SVB existente. El precio de conversión se establece en 4,84375 dólares canadienses por acción ordinaria.
La compañía también ha proporcionado una actualización sobre su actual línea de crédito SVB, que venció el 21 de junio de 2024, con una responsabilidad total de 12 millones de dólares canadienses. Eupraxia ha pagado completamente 6 millones de dólares canadienses al SVB Innovation Credit Fund y está en conversaciones para el saldo restante. Las reservas de efectivo de la compañía se reducirán en hasta 12 millones de dólares canadienses para saldar esta deuda.
Incluyendo la nueva línea de deuda convertible, Eupraxia anticipa tener suficientes fondos para operar hasta el segundo trimestre de 2025.
Eupraxia Pharmaceuticals Inc. (TSX: EPRX) (NASDAQ: EPRX)는 Yabema Capital 및 다른 기존 주주들과 함께 1,200만 캐나다 달러의 전환 가능한 채무 상품을 발표했습니다. 이 채무 상품은 기존 SVB 시설의 해제 조건부로 120일 이내에 인출 가능하며, 전환 가격은 주당 4.84375 캐나다 달러로 설정되어 있습니다.
회사는 또한 2024년 6월 21일 만료된 총 책임 금액이 1,200만 캐나다 달러인 기존 SVB 시설에 대한 업데이트를 제공했습니다. Eupraxia는 SVB Innovation Credit Fund에 대해 600만 캐나다 달러를 완전히 상환했으며 잔여 상환에 대해 논의 중입니다. 이 회사의 현금 보유액은 이 채무를 해결하기 위해 최대 1,200만 캐나다 달러까지 줄어들 것입니다.
새로운 전환 가능한 채권 시설을 포함하여, Eupraxia는 2025년 2분기까지 운영 자금을 충분히 확보할 것으로 예상합니다.
Eupraxia Pharmaceuticals Inc. (TSX: EPRX) (NASDAQ: EPRX) a annoncé une nouvelle facilité de dette convertible de 12 millions de dollars canadiens avec Yabema Capital et d'autres actionnaires actuels. La facilité est disponible pour un tirage dans les 120 jours, sous réserve de la libération de la facilité SVB existante. Le prix de conversion est fixé à 4,84375 dollars canadiens par action ordinaire.
L'entreprise a également fourni une mise à jour concernant sa facilité SVB existante, qui a expiré le 21 juin 2024, avec une responsabilité totale de 12 millions de dollars canadiens. Eupraxia a entièrement remboursé 6 millions de dollars canadiens au SVB Innovation Credit Fund et est en discussion pour le règlement restant. Les réserves de liquidités de l'entreprise seront réduites jusqu'à 12 millions de dollars canadiens pour régler cette dette.
En incluant la nouvelle facilité de dette convertible, Eupraxia s'attend à disposer de fonds suffisants pour financer ses opérations jusqu'au deuxième trimestre de 2025.
Eupraxia Pharmaceuticals Inc. (TSX: EPRX) (NASDAQ: EPRX) hat eine neue schuldverschreibung von 12 Millionen kanadischen Dollar mit Yabema Capital und anderen aktuellen Aktionären angekündigt. Die Zeichnungsberechtigung ist innerhalb von 120 Tagen verfügbar, vorbehaltlich der Freigabe der bestehenden SVB-Fazilität. Der Umwandlungspreis ist auf 4,84375 kanadische Dollar pro Stammaktie festgelegt.
Das Unternehmen hat auch ein Update zu seiner bestehenden SVB-Fazilität gegeben, die am 21. Juni 2024 fällig wurde, mit einer Gesamtverbindlichkeit von 12 Millionen kanadischen Dollar. Eupraxia hat 6 Millionen kanadische Dollar vollständig an den SVB Innovation Credit Fund zurückgezahlt und befindet sich in Gesprächen über die verbleibende Abwicklung. Die liquiden Mittel des Unternehmens werden um bis zu 12 Millionen kanadische Dollar reduziert, um diese Schulden zu begleichen.
Mit der neuen konvertierbaren Verschuldung rechnet Eupraxia damit, bis zum zweiten Quartal 2025 über ausreichende Mittel für den Betrieb zu verfügen.
- New C$12 million convertible debt facility secured from supportive investors
- Sufficient cash to fund operations until Q2 2025
- Fully discharged C$6 million of the SVB Facility debt
- Cash reserves to be reduced by up to C$12 million to settle SVB Facility debt
- Convertible debt may lead to potential dilution of existing shareholders
Insights
Eupraxia Pharmaceuticals' new
Positively, this arrangement strengthens Eupraxia's liquidity position, extending its operational runway to Q2 2025. This additional runway is important for a clinical-stage biotech company, providing more time to advance its eosinophilic esophagitis and osteoarthritis programs without immediate dilution pressure.
However, investors should note potential dilution risks. If fully converted, this facility could lead to the issuance of approximately 2.48 million new shares, representing a
The resolution of the Silicon Valley Bank facility, reducing cash reserves by up to
In summary, while this facility provides important financial flexibility, it also underscores the company's ongoing capital needs and the challenges faced by pre-revenue biotech firms in balancing growth with shareholder value.
Eupraxia's financial maneuver with this new convertible debt facility highlights the ongoing funding challenges faced by clinical-stage biotech companies. The company's focus on eosinophilic esophagitis and osteoarthritis represents targeting of significant unmet medical needs, which could potentially lead to substantial market opportunities if successful.
The company's proprietary Diffusphere™ technology for optimizing drug delivery is a key differentiator. However, investors should be aware that the path to commercialization in biotech is often long and risky. The extended cash runway to Q2 2025 provides a critical buffer for Eupraxia to advance its clinical programs, but it's essential to monitor the progress of these trials closely.
The involvement of existing shareholders in this new facility suggests continued confidence in Eupraxia's potential. However, it also indicates a possible lack of new institutional investor interest, which could be a concern. The biotech sector often relies on a mix of venture capital, public markets and strategic partnerships for funding and diversification of funding sources is generally seen as a positive sign.
Investors should keep a close eye on upcoming clinical milestones and any potential partnerships or licensing deals, as these could significantly impact Eupraxia's valuation and future funding needs. The company's ability to advance its pipeline efficiently with this extended runway will be important in determining its long-term success and attractiveness to both current and potential investors.
- The Company also provides an update on the Silicon Valley Bank convertible debt facility
- Including the new
C convertible debt facility, Eupraxia anticipates it has sufficient cash to fund its operations to the second quarter of 2025$12 million
Under the Convertible Debt Facility, Yabema Capital Limited and other current Eupraxia shareholders (together, the "Lenders") will make available for drawdown an aggregate amount of
The aggregate unpaid principal amount and any accrued and unpaid interest thereon will be convertible at each individual lender's discretion into Eupraxia common shares (the "Common Shares"), at a conversion price equal to
"The new convertible debt facility provides an important source of additional funding from long term, supportive investors, and creates greater stability to Eupraxia's cap structure as we continue to advance our clinical programs in eosinophilic esophagitis and osteoarthritis," said Dr. James Helliwell, Chief Executive Officer of Eupraxia.
The Convertible Debt Facility is subject to final approval of the Toronto Stock Exchange.
Update on existing contingent convertible debt facility with Silicon Valley Bank and SVB Innovation Credit Fund (the "SVB Facility")
The Company also announced today an update on its existing SVB Facility with Silicon Valley Bank and SVB Innovation Credit Fund (together, the "SVB Parties").
Under the terms of the SVB Facility, which matured on June 21, 2024, the SVB Parties each funded
As a result, Eupraxia's total cash reserves will be reduced by up to
Including the new
About Eupraxia Pharmaceuticals Inc.
Eupraxia is a clinical-stage biotechnology company focused on the development of locally delivered, extended-release products that have the potential to address therapeutic areas with high unmet medical need. The Company strives to provide improved patient benefit and has developed technology designed to deliver targeted, long-lasting activity with fewer side effects. DiffuSphere™, a proprietary, polymer-based micro-sphere technology, is designed to facilitate targeted drug delivery, with extended duration of effect, and offers multiple, highly tuneable pharmacokinetic (PK) profiles. This investigational technology can be engineered for use with multiple active pharmaceutical ingredients and delivery methods.
Eupraxia's EP-104GI is currently in a Phase 1b/2a trial, the RESOLVE trial, for the treatment of eosinophilic esophagitis ("EoE"). EP-104GI is administered as an injection into the esophageal wall, providing local delivery of drug. This is a unique treatment approach for EoE. Eupraxia also recently completed a Phase 2b clinical trial (SPRINGBOARD) of EP-104IAR for the treatment of pain due to osteoarthritis of the knee. The trial met its primary endpoint and three of the four secondary endpoints. In addition, Eupraxia is developing a pipeline of later and earlier-stage long-acting formulations. Potential pipeline indications include candidates for other inflammatory joint indications and oncology, each designed to improve on the activity and tolerability of currently approved drugs. For further details about Eupraxia, please visit the Company's website at: www.eupraxiapharma.com.
Notice Regarding Forward-looking Statements and Information
This news release includes forward-looking statements and forward–looking information within the meaning of applicable securities laws. Often, but not always, forward–looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes", "estimates", "potential" or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward looking statements in this news release include statements regarding the Company's new Convertible Debt Facility; the plans to draw down on the Convertible Debt Facility; the satisfaction of conditions precedent to the draw down on the Convertible Debt Facility; the receipt of final approval from the Toronto Stock Exchange; the sufficiency of the Company's cash to fund its operations; expected timing of the full settlement of the SVB Facility; the Company's business strategies and objectives, including current and future plans and opportunities, expectations and intentions; the Company's clinical trials, including with respect to the potential for higher doses; the ability of the Company to execute on its business strategy; the potential of Eupraxia's product candidates; the Company's expectations regarding its product designs, including with respect to patient benefit, duration, safety, effectiveness and tolerability; the results gathered from studies of Eupraxia's product candidates; the potential and competitive advantages of Diffusphere™ in connection with the drug delivery process; the advancement of opportunities stemming from Diffusphere™ and the expansion of pipeline designs; the benefits to patients from the Company's drug platforms and the translation of the Company's technologies and expansion of its offerings into clinical applications.
Such statements and information are based on the current expectations of Eupraxia's management, and are based on assumptions, including but not limited to: future research and development plans for the Company proceeding substantially as currently envisioned; industry growth trends, including with respect to projected and actual industry sales; the Company's ability to obtain positive results from the Company's research and development activities, including clinical trials; and the Company's ability to protect patents and proprietary rights. Although Eupraxia's management believes that the assumptions underlying these statements and information are reasonable, they may prove to be incorrect. The forward–looking events and circumstances discussed in this news release may not occur by certain dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Eupraxia, including, but not limited to: the Company's limited operating history; the Company's novel technology with uncertain market acceptance; if the Company breaches any of the agreements under which it licenses rights to its product candidates or technology from third parties, the Company could lose license rights that are important to its business; the Company's current license agreement may not provide an adequate remedy for its breach by the licensor; the Company's technology may not be successful for its intended use; the Company's future technology will require regulatory approval, which is costly and the Company may not be able to obtain it; the Company may fail to obtain regulatory approvals or only obtain approvals for limited uses or indications; the Company's clinical trials may fail to demonstrate adequately the safety and efficacy of our product candidates at any stage of clinical development; the Company may be required to suspend or discontinue clinical trials due to side effects or other safety risks; the Company completely relies on third parties to provide supplies and inputs required for its products and services; the Company relies on external contract research organizations to provide clinical and non-clinical research services; the Company may not be able to successfully execute its business strategy; the Company will require additional financing, which may not be available; any therapeutics the Company develops will be subject to extensive, lengthy and uncertain regulatory requirements, which could adversely affect the Company's ability to obtain regulatory approval in a timely manner, or at all; the impact of health pandemics or epidemics on the Company's operations; the Company's restatement of its consolidated financial statements, which may lead to additional risks and uncertainties, including loss of investor confidence and negative impacts on the Company's common share price; and other risks and uncertainties described in more detail in Eupraxia's public filings on SEDAR+ (sedarplus.ca) and EDGAR (sec.gov). Although Eupraxia has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward–looking statements and information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward–looking statement or information can be guaranteed. Except as required by applicable securities laws, forward–looking statements and information speak only as of the date on which they are made and Eupraxia undertakes no obligation to publicly update or revise any forward–looking statement or information, whether as a result of new information, future events or otherwise.
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SOURCE Eupraxia Pharmaceuticals Inc.
FAQ
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