Eupraxia Pharmaceuticals Inc. (NASDAQ:EPRX) shares fell sharply, tumbling 11% on Tuesday following the announcement of a discounted public offering.
The clinical-stage biotech company set the price for 12,727,273 common shares at $5.50 each, aiming to raise roughly $70 million in gross proceeds before accounting for underwriting fees and offering costs. Additionally, underwriters have a 30-day option to purchase up to 1,909,090 additional shares on the same terms.
The offering price is below recent trading levels, which contributed to the stock’s decline during Tuesday’s session. The placement is expected to close on September 24, 2025, subject to customary closing conditions, including listing approvals from the Toronto Stock Exchange and Nasdaq Capital Market.
Cantor and LifeSci Capital are acting as joint book-running managers for the offering, with Bloom Burton serving as co-manager. Eupraxia intends to use the proceeds to further develop its Diffusphere™ platform, which aims to optimize controlled, localized drug delivery for therapies addressing significant unmet medical needs.
Investors reacted to both the potential dilution from the new shares and the discounted pricing, resulting in the steep drop in trading.
Eupraxia Pharmaceuticals stock price
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