Evoke Pharma Announces Proceeds from Existing Warrants and Board Expansion
Evoke Pharma (NASDAQ: EVOK) has announced receiving approximately $3.0 million in gross proceeds from the amendment and exercise of existing warrants. The funds will be used to support working capital, general corporate purposes, and advancing commercial efforts for GIMOTI® (metoclopramide) nasal spray. The warrants were exercised at $8.16 per share, with no new warrants issued in these transactions, which closed on September 30, 2024.
CEO Matt D'Onofrio highlighted that recent regulatory events suggest Gimoti is unlikely to face direct branded competition for several years. As part of the transaction, Nantahala Capital Management, an existing investor and warrant holder, has been granted the right to nominate two members to the company's Board of Directors.
Evoke Pharma (NASDAQ: EVOK) ha annunciato di aver ricevuto circa 3,0 milioni di dollari in proventi lordi dall'emendamento e dall'esercizio di warrant esistenti. I fondi saranno utilizzati per sostenere il capitale circolante, scopi aziendali generali e per promuovere gli sforzi commerciali per GIMOTI® (metoclopramide) spray nasale. I warrant sono stati esercitati a 8,16 dollari per azione, senza nuove emissioni di warrant in queste transazioni, che si sono concluse il 30 settembre 2024.
Il CEO Matt D'Onofrio ha sottolineato che gli eventi regolatori recenti suggeriscono che Gimoti è improbabile che affronti una concorrenza diretta di marca per diversi anni. Come parte della transazione, Nantahala Capital Management, un investitore esistente e detentore di warrant, ha ricevuto il diritto di nominare due membri nel Consiglio di Amministrazione della società.
Evoke Pharma (NASDAQ: EVOK) ha anunciado haber recibido aproximadamente 3,0 millones de dólares en ingresos brutos por la enmienda y el ejercicio de warrants existentes. Los fondos se utilizarán para apoyar el capital de trabajo, fines corporativos generales y para avanzar en los esfuerzos comerciales para GIMOTI® (metoclopramida) en spray nasal. Los warrants se ejercieron a 8,16 dólares por acción, sin nuevos warrants emitidos en estas transacciones, que se cerraron el 30 de septiembre de 2024.
El CEO Matt D'Onofrio destacó que los eventos regulatorios recientes sugieren que Gimoti es poco probable que enfrente competencia de marca directa durante varios años. Como parte de la transacción, Nantahala Capital Management, un inversor existente y tenedor de warrants, ha recibido el derecho de nombrar a dos miembros de la Junta Directiva de la empresa.
Evoke Pharma (NASDAQ: EVOK)는 기존 워런트의 수정 및 행사로부터 약 300만 달러의 총 수익을 받았다고 발표했습니다. 이 자금은 운영 자본, 일반 기업 목적 및 GIMOTI® (메토클로프라마이드) 비강 스프레이의 상업적인 노력을 지원하는 데 사용될 것입니다. 워런트는 주당 8.16달러에 행사되었으며, 이 거래에서는 새로운 워런트가 발행되지 않았고, 거래는 2024년 9월 30일에 종료되었습니다.
CEO Matt D'Onofrio는 최근 규제 사건들이 Gimoti가 향후 몇 년간 직접적인 브랜드 경쟁에 직면할 가능성이 낮다는 것을 시사한다고 강조했습니다. 거래의 일환으로, 기존 투자자이자 워런트 보유자인 Nantahala Capital Management는 회사의 이사회에 두 명의 임원을 지명할 권리를 부여받았습니다.
Evoke Pharma (NASDAQ: EVOK) a annoncé avoir reçu environ 3,0 millions de dollars de produits bruts suite à l'amendement et à l'exercice de bons de souscription existants. Les fonds seront utilisés pour soutenir le fonds de roulement, les objectifs d'entreprise généraux et pour faire avancer les efforts commerciaux pour GIMOTI® (métoclopramide) spray nasal. Les bons de souscription ont été exercés à 8,16 dollars par action, sans new bons de souscription émis dans ces transactions, qui ont été clôturées le 30 septembre 2024.
Le PDG Matt D'Onofrio a souligné que les récents événements réglementaires indiquent que Gimoti est peu susceptible d'être confronté à une concurrence de marque directe pendant plusieurs années. Dans le cadre de la transaction, Nantahala Capital Management, un investisseur existant et détenteur de bons de souscription, s'est vu accorder le droit de nommer deux membres au conseil d'administration de la société.
Evoke Pharma (NASDAQ: EVOK) hat angekündigt, dass das Unternehmen etwa 3,0 Millionen Dollar an Bruttoerlösen aus der Änderung und Ausübung bestehender Warrants erhalten hat. Die Mittel werden verwendet, um das Betriebskapital, allgemeine Unternehmenszwecke zu unterstützen und die kommerziellen Bemühungen für GIMOTI® (Metoclopramid) Nasenspray voranzutreiben. Die Warrants wurden zu 8,16 Dollar pro Aktie ausgeübt, wobei bei diesen Transaktionen keine neuen Warrants ausgegeben wurden, die am 30. September 2024 abgeschlossen wurden.
CEO Matt D'Onofrio hob hervor, dass die jüngsten regulatorischen Ereignisse darauf hindeuten, dass Gimoti in den nächsten Jahren voraussichtlich keiner direkten Markenwettbewerbsfähigkeit ausgesetzt sein wird. Im Rahmen der Transaktion hat Nantahala Capital Management, ein bestehender Investor und Warrantinhaber, das Recht erhalten, zwei Mitglieder des Vorstandes des Unternehmens zu benennen.
- Received $3.0 million in gross proceeds from warrant exercise
- Strengthened financial position to support GIMOTI commercialization
- Unlikely to face direct branded competition for several years
- Potential for improved corporate governance with new board nominations
- Dilution of existing shareholders due to warrant exercise
Insights
The recent developments at Evoke Pharma are moderately positive for investors. The company has secured
The lack of direct branded competition for GIMOTI® in the near term is a notable advantage, potentially allowing Evoke to capture a larger market share. However, investors should consider that this may also indicate market size or regulatory challenges in the space.
The expansion of the board with two nominees from Nantahala Capital Management, a significant investor, could bring fresh perspectives and align management more closely with shareholder interests. However, it's important to monitor how this change might affect corporate governance and strategic direction.
While the news is positive, the company's small market cap of
The recent warrant exercise and board expansion at Evoke Pharma present interesting market dynamics. The
The lack of direct branded competition for GIMOTI® in the near term is a double-edged sword. While it provides Evoke with a unique market position, it may also indicate market potential or regulatory hurdles in the gastrointestinal disease treatment space. Investors should research the total addressable market for GIMOTI® and its potential for market penetration.
The involvement of Nantahala Capital Management in board nominations suggests increased activist investor influence. This could lead to more aggressive growth strategies or potential M&A activities in the future. However, it's important to monitor how this shift in board composition might impact the company's long-term strategy and corporate governance.
Given Evoke's micro-cap status, investors should be prepared for high volatility and consider the stock's liquidity when making investment decisions.
Nantahala to nominate 2 board seats
Portion of the proceeds received from warrants executed at
SOLANA BEACH, Calif., Oct. 01, 2024 (GLOBE NEWSWIRE) -- Evoke Pharma, Inc. (NASDAQ: EVOK), a specialty pharmaceutical company focused on developing treatments for gastrointestinal (GI) diseases, with a particular emphasis on GIMOTI® (metoclopramide) nasal spray, announced today that it received approximately
The approximately
"Recent regulatory events clarify that Gimoti is unlikely to have direct branded competition for several years at the earliest. With this knowledge, we welcome the additional capital which strengthens our ability to create long-term value for our shareholders," said Matt D’Onofrio, CEO of Evoke Pharma.
As part of this transaction, Nantahala Capital Management, an existing investor and warrant holder, has been granted the right to nominate two members to the company’s Board of Directors.
About Evoke Pharma, Inc.
Evoke is a specialty pharmaceutical company focused primarily on the development of drugs to treat GI disorders and diseases. The company developed, commercialized and markets GIMOTI, a nasal spray formulation of metoclopramide, for the relief of symptoms associated with acute and recurrent diabetic gastroparesis in adults.
Diabetic gastroparesis is a GI disorder affecting millions of patients worldwide, in which the stomach takes too long to empty its contents resulting in serious GI symptoms as well as other systemic complications. The gastric delay caused by gastroparesis can compromise absorption of orally administered medications. Prior to FDA approval to commercially market GIMOTI, metoclopramide was only available in oral and injectable formulations and remains the only drug currently approved in the United States to treat gastroparesis.
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Safe Harbor Statement
Evoke cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negatives of these terms or other similar expressions. These statements are based on the company’s current beliefs and expectations. These forward-looking statements include statements regarding: expectations on potential future branded competition for GIMOTI; the additional capital supporting Evoke’s ability to create long-term shareholder value; and potential future directors to be nominated by Nantahala. The inclusion of forward-looking statements should not be regarded as a representation by Evoke that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in Evoke’s business, including, without limitation: Evoke and EVERSANA may not be able to successfully drive market demand for GIMOTI; alternative treatments for gastroparesis may be developed or approved and may be shown to be superior to GIMOTI; Evoke’s ability to obtain additional financing as needed to support its operations; Evoke may use its capital resources sooner than expected; Evoke’s ability to maintain compliance with Nasdaq’s stockholder’s equity requirements; Evoke’s dependence on third parties for the manufacture of GIMOTI; Evoke is entirely dependent on the success of GIMOTI; inadequate efficacy or unexpected adverse side effects relating to GIMOTI that could result in recalls or product liability claims; Evoke’s ability to maintain intellectual property protection for GIMOTI; and other risks and uncertainties detailed in Evoke’s prior press releases and in the periodic reports it files with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Evoke undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investor & Media Contact:
Daniel Kontoh-Boateng
DKB Partners
Tel: 862-213-1398
dboateng@dkbpartners.net
FAQ
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