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Eupraxia Pharmaceuticals Inc. Announces $10 Million Convertible Debt Agreement with Silicon Valley Bank and Conversion of $6.0 Million pre-IPO Debt
Eupraxia Pharmaceuticals Inc. Announces $10 Million Convertible Debt Agreement with Silic...
About this update from Eupraxia Pharmaceuticals, Inc.
[{"type":"text","content":"\n \n \n \n Eupraxia Pharmaceuticals Inc. Announces $10 Million Convertible Debt Agreement with Silicon Valley Bank and Conversion of $6.0 Million pre-IPO Debt\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prnml40{\nMARGIN-LEFT:3.33em\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n VICTORIA, BC\n \n ,\n \n June 21, 2021\n \n /CNW/ - Eupraxia Pharmaceuticals Inc.\n \n \n (\"Eupraxia\" or the \"Company\") (TSX: EPRX), a Phase 2 clinical-stage biotechnology company with an innovative drug delivery technology platform, today announced that it has entered into a contingent convertible debt agreement (the \"Agreement\") with Silicon Valley Bank (\"SVB\") and concurrently drew down in full the\n \n $10 million\n \n principal amount under the Agreement. In addition, the Company announces the conversion of approximately\n \n $6.0 million\n \n of outstanding indebtedness into common shares of the Company (\"Common Shares\") pursuant to certain convertible bridge loans made to the Company prior to its\n \n March 2021\n \n initial public offering (the \"Pre-IPO Bridge Loans\").\n \n \n \"We are extremely pleased with the continued fortification of the Company's balance sheet. With a fully funded Phase 2 program for our lead product candidate, EP-104IAR, this additional capital from a trusted and supportive investor provides us with greater financial and operating flexibility to broaden our development plans for EP-104IAR and the underlying platform technology,\" said Dr.\n \n James Helliwell\n \n , Chief Executive Officer of Eupraxia. \"The funds will also help us identify additional therapeutic targets to expand our pipeline of locally delivered, extended-release drug candidates.\"\n \n \n A summary of the key terms of the Agreement is as follows:\n \n \n \n \n $10 million\n \n in principal, which was drawn down at signing of the Agreement.\n \n \n \n \n Term of 36 months or 48 months upon SVB's election.\n \n \n \n \n Interest rate per annum of the greater of 2.45% and Canadian prime rate, requiring monthly interest payments, and a payment in kind at a rate of 7% per annum, ca...