Eupraxia Pharmaceuticals Inc (NASDAQ:EPRX) (TSX:EPRX), a Canada-based clinical-stage biotechnology company, announced on Thursday the pricing of its USD55m public offering of common shares and pre-funded warrants.

The 6,428,574 common shares are priced at USD7.00 per share, and pre-funded warrants to purchase up to 1,428,571 common shares priced at USD6.99999 per warrant, which equals the public offering price per common share less the CAD0.00001 per share exercise price of each warrant. Gross proceeds are anticipated to amount to approximately USD55m, before deducting the underwriting commissions and estimated expenses incurred in connection with the offering.

Each pre-funded warrant will entitle the holder to acquire one common share of the company at a nominal exercise price of CAD0.00001 per pre-funded warrant share and will not expire until exercised in full.

In addition, Eupraxia has granted the underwriters a 30-day option to purchase up to an additional 1,178,571 common shares on the same terms and conditions. All of the common shares and pre-funded warrants in the offering are being sold by the company.

The offering is expected to close on 20 February 2026, subject to the satisfaction of customary closing conditions, including the listing of the common shares and pre-funded warrant shares on the Toronto Stock Exchange and the Nasdaq Capital Market, and receipt of any required approvals of the TSX.

Cantor and LifeSci Capital are acting as joint book-running managers for the offering, with Bloom Burton and Craig-Hallum acting as co-managers.

Eupraxia intends to use the net proceeds from the offering primarily for the continued advancement of EP-104GI for Eosinophilic Esophagitis, including the completion of ongoing preclinical studies, and Phase 2 clinical trials, preparations for a Phase 3 clinical trial including the related regulatory submissions, and manufacturing activities, and to undertake the necessary commercial/market development activities to prepare for the eventual product launch. It also intends to use a portion of the proceeds to accelerate and expand its plans to pursue clinical studies with EP-104GI in multiple additional gastrointestinal indications, including in oesophageal strictures and fibrostenotic Crohn's disease.

A portion of the proceeds will also be allocated to research and development of additional pipeline candidates, business development initiatives, and general corporate purposes, and the company may also use a portion of the proceeds to expand its intellectual property portfolio and strengthen its corporate infrastructure to support future growth.