Evelo Biosciences Plans $25.5M Private Placement To Fund Psoriasis Trial, Pay Down Debt
Portfolio Pulse from Nabaparna Bhattacharya
Evelo Biosciences, Inc. (NASDAQ:EVLO) has entered into a securities purchase agreement to sell 11.03 million shares at $2.31 each in a private placement. The total proceeds of $25.5 million will be used to fund the Phase 2a trial of EDP2939, a product candidate for moderate psoriasis, pay down $5 million in debt, and for general corporate purposes. The private placement is expected to close on or about July 11, 2023.
July 10, 2023 | 3:47 pm
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Evelo Biosciences is raising funds through a private placement to fund its Phase 2a trial and pay down debt. This could potentially strengthen the company's financial position and accelerate its product development.
The private placement will provide Evelo Biosciences with the necessary funds to continue its Phase 2a trial and pay down its debt. This could potentially lead to a stronger financial position for the company and accelerate the development of its product candidate, EDP2939. As a result, this could have a positive impact on the company's stock price in the short term.
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