IPOS - Evoke Pharma Announces Closing of $7.5 Million Public Offering | Benzinga
SOLANA BEACH, Calif., Feb. 14, 2024 (GLOBE NEWSWIRE) -- 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 closed an underwritten public offering led by Nantahala Capital Management, with participation by other fundamental investors, for gross proceeds of up to $30 million, which included an initial upfront funding of approximately $7.5 million, prior to deducting underwriting discounts and commissions and estimated offering expenses.
"We are pleased to have closed this offering with these fundamental, healthcare-oriented institutional investors," stated Evoke Pharma Chief Executive Officer Dave Gonyer. "With the momentum we're experiencing in new prescribers and prescriptions and our continued capital efficient infrastructure, we expect that, based on our current operating plan, our existing cash and cash equivalents, future cash flows from net product sales, along with the initial net proceeds from this offering should be sufficient to fund our operations for the next 12 months. The combination of new commercial programs and distribution gives us the confidence to continue to gain new GIMOTI prescribers and increase prescriptions, fills, and revenue of GIMOTI with the goal of attaining profitability for the company. We are committed to driving long-term shareholder value, and we believe that honing in on our current strategies and being capital efficient will allow us to operate a sustainable, profitable specialty pharmaceutical business."
The offering was 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 ...