Evelo Biosciences, Inc. EVLO inked a securities purchase agreement with investors in a private placement to sell 11.03 million shares at $2.31 apiece.
Total proceeds from the private placement are expected to be $25.5 million.
The proceeds will be used to fund the readout of its Phase 2a trial of EDP2939, its first oral extracellular vesicle product candidate in moderate psoriasis.
Evelo will also pay down approximately $5 million in debt and use the money for general corporate purposes.
On Feb. 27, the Cambridge, Massachusetts-based company announced that EDP2939 commenced dosing in a Phase 2 Psoriasis trial.
The offering is being led by Evelo's founder, Flagship Pioneering, with participation from other new and existing investors.
The private placement is closed on or about July 11, 2023.
Price Action: EVLO shares are trading higher by 7.35% to $2.48 on the last check Monday.
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