Evoke Pharma Announces Pricing of Underwritten Public Offering of up to $30 Million
February 09 2024 - 7:30AM
Evoke Pharma, Inc. (NASDAQ: EVOK), a specialty
pharmaceutical company focused primarily on treatments for
gastrointestinal (GI) diseases with an emphasis on
GIMOTI® (metoclopramide) nasal spray, announced today
that it has priced an underwritten public offering led by Nantahala
Capital Management, with participation by other fundamental
investors, for gross proceeds of up to $30 million, that includes
initial upfront funding of approximately $7.5 million, prior to
deducting underwriting discounts and commissions and estimated
offering expenses.
The offering is comprised of (i) 11,029,411
shares of common stock (or pre-funded warrants in lieu thereof),
(ii) 11,029,411 Series A Warrants with an initial exercise price of
$0.68 per share and a term of five years following the issuance
date, (iii) 11,029,411 Series B Warrants with an exercise price of
$0.68 per share and a term of nine months following the issuance
date and (iv) 11,029,411 Series C Warrants with an exercise price
of $0.68 per share and a term of five years following the issuance
date, subject to early expiration as described below. The Series C
Warrants may only be exercised to the extent and in proportion to a
holder of the Series C Warrants exercising its Series B Warrants,
and are subject to an early expiration of nine months, in
proportion and only to the extent any Series C Warrants expire
unexercised.
The combined price per share of common stock,
Series A Warrant, Series B Warrant and Series C Warrant is $0.68,
totaling $7.5 million initial gross proceeds to the Company. If the
Series A Warrants are exercised in full, the Company would receive
an additional $7.5 million in gross proceeds. If the Series B
Warrants are exercised in full, the Company would receive an
additional $7.5 million in gross proceeds. If the Series C Warrants
are exercised in full, the Company would receive an additional $7.5
million in gross proceeds; thus if all warrants are exercised in
full the total gross proceeds to the Company including the initial
upfront funding would be $30 million.
Evoke intends to use the net proceeds from the
public offering for working capital and general corporate purposes.
Evoke may also use a portion of the net proceeds, together with its
existing cash and cash equivalents, to in-license, acquire, or
invest in complementary businesses, technologies, products or
assets; however, Evoke has no current commitments or obligations to
do so. The offering is expected to close on or about February 13,
2024, subject to satisfaction of customary closing conditions.
Craig-Hallum and Laidlaw & Company (UK) Ltd.
are acting as joint book-running managers for the offering.
The securities described above are being offered
by Evoke pursuant to a registration statement on Form S-1 (File No.
333-275443) previously filed and declared effective by the
Securities and Exchange Commission (SEC). This press release shall
not constitute an offer to sell or the solicitation of an offer to
buy, nor shall there be any sale of these securities in any state
or 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 jurisdiction. The offering is
being made only by means of a written prospectus and prospectus
supplement that will form a part of the registration statement. A
final prospectus supplement relating to the offering will be filed
with the SEC and will be available on the SEC’s website at
www.sec.gov. Alternatively, when available, copies of the final
prospectus supplement relating to this offering may be obtained
from Craig-Hallum Capital Group LLC, Attention: Equity Capital
Markets, 222 South Ninth Street, Suite 350, Minneapolis, MN 55402,
by telephone at (612) 334-6300 or by email at prospectus@chlm.com;
or from Laidlaw & Company (UK) Ltd., Attention: Syndicate
Department, 521 Fifth Avenue, 12th Floor, New York, NY 10175, or by
email at syndicate@laidlawltd.com.
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.
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
Evoke’s current beliefs and expectations. These forward-looking
statements include statements regarding Evoke's expectations on the
completion, timing and size of the offering and the anticipated use
of proceeds therefrom, as well as the potential additional proceeds
to the Company from the exercise of the Series A Warrants, Series B
Warrants and Series C Warrants. 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 associated with market conditions and the
satisfaction of customary closing conditions related to the
proposed public offering, investors may choose not to exercise any
of the warrants issued in the offering and other risks and
uncertainties inherent in Evoke’s business, including those
described in Evoke's periodic filings with the SEC and the
prospectus supplement and related prospectus for this offering
filed with the SEC. 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 Contact:Daniel Kontoh-BoatengDKB
PartnersTel: 862-213-1398dboateng@dkbpartners.net
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