DENVER, Colo., Feb 13, 2025 (247marketnews.com)- Edesa Biotech (NASDAQ:EDSA) successfully completed a private placement offering raising $15.0 million in gross proceeds.
Edesa sold an aggregate of 834 Series B-1 convertible preferred shares and 3,468,746 common shares. The purchase price for each Series B-1 Preferred Share was $10,000. The purchase price for each common share was $1.92.
The offering was led by Velan Capital and included new investors, as well as existing Edesa shareholders and insiders. Notably, Edesa officers and directors purchased approximately $1.1 million of the securities sold. The offering was conducted without a placement agent, underwriter, broker, or dealer.
Edesa intends to use the net proceeds from the offering primarily to fund the advancement of its EB06 program, a CXCL10 monoclonal antibody, into a Phase 2 clinical study for treating nonsegmental vitiligo. The remaining funds will be used for working capital and general corporate purposes.
The Series B-1 Preferred Shares are convertible into common shares at a price of $1.92 per share. The conversion is subject to a beneficial ownership limitation, capping ownership at 4.99% (or 9.99% at the investor’s option) of the outstanding common shares.
In connection with the offering, David Liu, a Senior Analyst at Velan Capital, was appointed to Edesa’s Board of Directors, effective immediately upon closing.
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