DJ Evelo Biosciences Shares Drop 12% After Public Offering Prices
By Chris Wack
Evelo Biosciences Inc. shares were down 12% to $16.33 Friday after the company priced an underwritten public offering of 4.5 million common shares at $15 a share.
Evelo granted the underwriters a 30-day option, solely to cover any over-allotments, to purchase up to an additional 675,000 shares of its common stock.
The proceeds from the offering are expected to be $67.5 million, the company said. All of the shares in the offering are to be sold by Evelo.
The offering is expected to close on or about Tuesday.
Evelo said it intends to use the proceeds from the offering, in addition to its existing cash resources, to continue the development of EDP1815 in a Phase 2 trial in psoriasis and initiate a Phase 2 trial of EDP1815 in atopic dermatitis; prepare to advance EDP1815 in multiple Phase 3 trials in psoriasis and atopic dermatitis, upon receipt of positive Phase 2 data; continue the Phase 2 and Phase 2/3 clinical trials of EDP1815 for the treatment of hyperinflammation caused by SARs-CoV-2; and for working capital and other general corporate purposes.
The stock hit a 52-week high of $19.93 on Thursday.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
January 29, 2021 10:03 ET (15:03 GMT)
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