EyeGate Pharmaceuticals ($EYEG), which targets drug delivery systems for treating eye diseases, said it has agreed to a registered direct offering of stock to an undisclosed institutional investor to raise about $3.77 million.
The closing is expected to be completed by the end of the week.
The company said the proceeds from the sale of common shares and shares of Series A convertible preferred stock will be used to support operations, including clinical trials. The buyer was described in a release as a “single healthcare dedicated institutional investor.”
Under the agreement, EyeGate will sell about of 441,000 shares of common stock at a price of $2.25 per share, and 2,776.5 shares of Series A convertible preferred stock, at a price of $1,000 per share.
Shares traded down 0.53 at $2.52 in evening trading Tuesday on the Nasdaq.
The company touts its delivery system for dexamethasone phosphate as an alternative to complicated intraocular injections and eye drops, which suffer from noncompliance. EyeGate says the device can administer the medication into both eyes in about 15 minutes. The EyeGate II Delivery System uses iontophoresis (a low-level electrical current) to deliver specified quantities of drug into the eye.
It consists of an applicator for drug delivery into the eye, components for transferring the drug from its vial into the applicator, an electrode to complete the electric circuit and a generator to provide current.
- check out the release