Dermata Therapeutics (NASDAQ: DRMA, DRMAW) Secures $3.5 Million in Private Placement Offering

Dermata Therapeutics, Inc. (NASDAQ:DRMA, DRMAW), a late-stage biotechnology company specializing in medical and aesthetic skin treatments, has announced a significant financing dealThe company has entered into definitive agreements to issue and sell 1,912,569 shares of common stock (or pre-funded warrants in lieu thereof) along with accompanying series A and series B warrants in a private placementThe offering, priced at $1.83 per share (or pre-funded warrant), is set to raise approximately $3.5 million in gross proceeds before placement agent fees and other expenses.

Under the terms of the deal, Dermata will also issue series A warrants and series B warrants to purchase up to 1,912,569 shares of common stockThe series A warrants have an exercise price of $1.58 per share and are exercisable immediately upon issuance, expiring five and one-half years from the issuance dateThe series B warrants will also have an exercise price of $1.58 per share but will expire eighteen months from the issuance dateThe private placement is expected to close on or about September 17, 2024, subject to the satisfaction of customary closing conditions.

H.CWainwright & Cois serving as the exclusive placement agent for the offering, facilitating the transaction under the rules of the Nasdaq Stock Market.

The net proceeds from this offering will be used by Dermata Therapeutics for a variety of corporate purposesThese include ongoing research and pre-clinical studies, clinical trials, and the development of new biological and pharmaceutical technologiesThe funds will also support investments in or acquisitions of companies that are complementary to Dermata’s technologies, licensing activities for current and future product candidates, and the advancement of emerging technologies.

The securities issued in this offering are being conducted as a private placement under Section 4(a)(2) of the Securities Act of 1933 and/or Regulation D, and have not been registered under the Securities Act or applicable state securities lawsConsequently, the warrants and underlying shares of common stock may not be offered or sold in the United States without an effective registration statement or applicable exemption from registration requirementsIn line with this, Dermata has agreed to file a resale registration statement covering the securities, ensuring compliance with regulatory requirements.

This private placement represents a crucial step for Dermata Therapeutics as it continues to advance its mission of developing innovative treatments for skin diseases and conditionsThe capital raised will support the company's strategic objectives and foster the growth of its promising therapeutic pipeline.