Eupraxia Pharmaceuticals Public Offering Priced at USD 55 Million to Advance Gastrointestinal Pipeline

Canada-based Eupraxia Pharmaceuticals Inc. (Nasdaq: EPRX / TSX: EPRX) announced the pricing of a public offering of common shares and pre-funded warrants for gross proceeds of approximately USD 55 million. The Eupraxia Pharmaceuticals public offering is expected to close on February 20, 2026, subject to customary closing conditions, including listing approval on both the Toronto Stock Exchange and the Nasdaq Capital Market. The company stated it intends to use net proceeds primarily to advance EP-104GI for eosinophilic esophagitis through completion of ongoing preclinical studies, Phase II clinical trials, preparations for a Phase III clinical trial including related regulatory submissions, manufacturing activities, and commercial and market development activities in anticipation of an eventual product launch. A portion of proceeds will also fund clinical studies of EP-104GI in additional gastrointestinal indications, including esophageal strictures and fibrostenotic Crohn's disease, as well as research and development of additional pipeline candidates, business development initiatives, and general corporate purposes.

Eupraxia Pharmaceuticals Pricing and Deal Structure

The US$55 million offering consists of 6,428,574 Eupraxia Pharmaceuticals common shares priced at USD 7.00 per share and pre-funded warrants to purchase up to 1,428,571 common shares priced at USD 6.99999 per pre-funded warrant, which equals the public offering price per common share less the CAD 0.00001 per share exercise price. Each pre-funded warrant entitles the holder to acquire one common share at a nominal exercise price of CAD 0.00001 and does not expire until exercised in full. The company has also granted the underwriters a 30-day option to purchase up to an additional 1,178,571 common shares on the same terms. All Eupraxia Pharmaceuticals common shares and pre-funded warrants in the EPRX stock offering are being sold by the company, with no secondary component.

Cantor Fitzgerald & Co. and LifeSci Capital LLC are acting as joint book-running managers for the offering. Bloom Burton Securities Inc. and Craig-Hallum Capital Group LLC are acting as co-managers. The press release did not identify specific institutional investors purchasing shares or warrants, nor did it disclose participation by company insiders. The offering is being made pursuant to a U.S. registration statement on Form F-10 declared effective by the SEC on February 7, 2024, and the company's existing Canadian short form base shelf prospectus dated February 5, 2024.

This EPRX stock offering follows a USD 80.5 million public offering that closed in September 2025 and a CAD 44.5 million non-brokered private placement that closed in October 2024, reflecting an escalating pattern of capital raises as the company's clinical programs have progressed.

Company Overview and Pipeline

Eupraxia Pharmaceuticals is a clinical-stage biotechnology company headquartered in Victoria, British Columbia, Canada, focused on the development of locally delivered, extended-release therapeutics. The company's proprietary DiffuSphere technology is a polymer-based microsphere platform designed to facilitate targeted drug delivery of both existing and novel drugs, with the objective of achieving sustained local concentrations while limiting systemic exposure.

The company's lead asset is EP-104GI, a DiffuSphere-formulated fluticasone propionate product administered via endoscopic esophageal injection for the treatment of eosinophilic esophagitis. EP-104GI is currently in the Phase IIb placebo-controlled portion of the RESOLVE clinical trial, with the first patient in the Phase IIb segment dosed in July 2025. Earlier Phase Ib/IIa dose-escalation cohorts within the same adaptive program have generated multiple interim datasets, with the company reporting histologic and symptom response data and follow-up extending to 52 weeks in certain cohorts. In January 2026, the company disclosed tissue health and biopsy-related data from the ongoing RESOLVE program. The Eupraxia Pharmaceuticals pricing of this offering directs funds toward completing Phase II work, initiating Phase III preparations, and expanding EP-104GI into additional gastrointestinal indications.

The company's second clinical program, EP-104IAR, is a DiffuSphere-formulated fluticasone propionate product administered via intra-articular injection for knee osteoarthritis pain. The Phase IIb SPRINGBOARD trial has been completed, with topline results reported in June 2023 and Phase IIb data subsequently published in The Lancet Rheumatology in October 2024. The company announced initiation of a Phase III development program in February 2024 following an FDA End-of-Phase II meeting. An MRI exploratory sub-study from SPRINGBOARD was also disclosed in January 2024.

Eupraxia has not announced any licensing or acquisition transactions to date. The company has previously referenced potential partnering opportunities for EP-104IAR development in its forward-looking statements, though no such agreements have been disclosed. Beyond the two clinical-stage programs, the press release references allocation of proceeds toward research and development of additional pipeline candidates and expansion of the company's intellectual property portfolio, though no specific preclinical assets were named.

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