Evelo Biosciences Announces $79.2 Million Registered Direct Offering of Common Stock
May 25 2022 - 8:37AM
Evelo Biosciences, Inc. (Nasdaq: EVLO), a clinical stage
biotechnology company developing a new modality of orally delivered
medicines, today announced that it has entered into a securities
purchase agreement with investors in a registered direct offering
of 54,246,358 shares of common stock (the “Shares”) at a purchase
price of $1.46 per share, resulting in gross proceeds of $79.2
million. The offering is being led by Evelo’s founder, Flagship
Pioneering, with participation from other new and existing
investors.
The offering is expected to close on May 27, 2022, subject to
customary closing conditions. Since this offering is being made
without an underwriter or a placement agent, Evelo will not be
paying any underwriting discounts in connection with the
transaction. Evelo intends to use the net proceeds from the
offering to continue the development of EDP1815 in a Phase 2 trial
in atopic dermatitis; prepare to advance EDP1815 in registration
trials in psoriasis and, upon receipt of positive Phase 2 data,
atopic dermatitis; and progress its first bacterial extracellular
vesicle (EV) product candidate EDP2939 into the clinic.
The Shares were offered pursuant to a shelf registration
statement that was previously filed with the U.S. Securities and
Exchange Commission (the “SEC”) and declared effective by the SEC
on August 30, 2021. A final prospectus supplement, which contains
additional information relating to the offering, will be filed with
the SEC and will be available on the SEC’s website at
www.sec.gov.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the Shares, nor shall there be any
sale of the Shares in any state or other jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
state or other jurisdiction.
Forward Looking Statements This press release
contains forward-looking statements including within the meaning of
the Private Securities Litigation Reform Act of 1995. All
statements contained in this press release that do not relate to
matters of historical fact should be considered forward-looking
statements, including statements concerning the anticipated use of
net proceeds from the offering.These forward-looking statements are
based on management’s current expectations. These statements are
neither promises nor guarantees, but involve known and unknown
risks, uncertainties and other important factors that may cause our
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements, including,
but not limited to, the following: the impact of the COVID-19
pandemic on our operations, including our preclinical studies and
clinical trials, and the continuity of our business; that we have
incurred significant losses, are not currently profitable and may
never become profitable; our need for additional funding; our
limited operating history; our unproven approach to therapeutic
intervention; the lengthy, expensive, and uncertain process of
clinical drug development, including potential delays in regulatory
approval; our reliance on third parties and collaborators to expand
our microbial library, conduct our clinical trials, manufacture our
product candidates, and develop and commercialize our product
candidates, if approved; our lack of experience in manufacturing,
selling, marketing, and distributing our product candidates;
failure to compete successfully against other drug companies;
protection of our proprietary technology and the confidentiality of
our trade secrets; potential lawsuits for, or claims of,
infringement of third-party intellectual property or challenges to
the ownership of our intellectual property; our patents being found
invalid or unenforceable; risks associated with international
operations; our ability to retain key personnel and to manage our
growth; the potential volatility of our common stock; that our
management and principal stockholders have the ability to control
or significantly influence our business; costs and resources of
operating as a public company; unfavorable or no analyst research
or reports; and securities class action litigation against us.These
and other important factors discussed under the caption “Risk
Factors” in our Quarterly Report on Form 10-Q for the three-month
period ended March 31, 2022, and our other reports filed with the
SEC, could cause actual results to differ materially from those
indicated by the forward-looking statements made in this press
release. Any such forward-looking statements represent management’s
estimates as of the date of this press release. While we may elect
to update such forward-looking statements at some point in the
future, except as required by law, we disclaim any obligation to do
so, even if subsequent events cause our views to change. These
forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of
this press release.
ContactsInvestors:Kendra
Sweeney,
239-877-7474ksweeney@evelobio.comMedia:Jessica
Cotrone, 978-760-5622jcotrone@evelobio.com
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