News

Evelo Biosciences Announces Securities Purchase Agreement

1 Mins read

Evelo Biosciences has recently made a significant announcement regarding a securities purchase agreement it has entered into. The company has successfully completed a private placement with investors, resulting in the sale of 11 million common shares at a price of $2.31 per share. This development has led to a positive surge in Evelo Biosciences shares, which have increased by 20% to reach $2.78.

Key Details of the Private Placement

In the past year, Evelo Biosciences’ stock has experienced a significant decline of 94%, and Friday’s session saw a further drop of 13%. However, the private placement has provided the company with a much-needed boost. The offering has generated proceeds of $25.5 million and has been led by Evelo’s founder, Flagship Pioneering, with participation from both new and existing investors.

Utilizing the Proceeds

Evelo Biosciences has outlined its intentions for the funds acquired through the private placement. The company plans to allocate the proceeds towards various purposes. Firstly, it aims to utilize the funds to support the readout of its Phase 2a trial of EDP2939, specifically in moderate psoriasis treatment. Furthermore, a portion of the funds, amounting to $5 million, will be allocated to pay off existing debt. Lastly, the remaining funds will be used for general corporate purposes.

Expected Timeline

The completion of the private placement is anticipated to occur on or around Tuesday, ensuring a swift process for investors involved.

Strategic Reverse Stock Split

On June 29th, Evelo Biosciences made an additional strategic decision involving a reverse stock split. The board approved a 1-for-20 reverse stock split for the company’s common stock. This move aims to increase the per-share price of Evelo Biosciences’ stock, enabling the company to meet the minimum per-share bid price requirement for continued listing on the Nasdaq Global Select Market.

For further information, contact Chris Wack.

Related posts
News

Claim Your Current 5k Welcome Bonus

10 Mins read
These games usually are equally good about mobile as that they are at the regular Joe Lot of money site where it’s…
News

Dollar heads for weekly loss on dovish Fed expectations | Honolulu Star-Advertiser

3 Mins read
Dollar banknotes are seen in this picture illustration in April 2017. The dollar firmed today but was heading for a weekly fall…
News

1xbet Promo Program Code And Bonuses

11 Mins read
Grab Your 1xbet Gambling Establishment 2025 Exclusive Encouraged Bonus Besides, exciting offers linked to the registration process in addition to promo codes…

Leave a Reply

Your email address will not be published. Required fields are marked *