GlobeNewswire
Evelo Biosciences Announces Pricing for Public Offering of Common Stock
CAMBRIDGE, Mass., Jan. 28, 2021 (GLOBE NEWSWIRE) – Evelo Biosciences, Inc. (Nasdaq: EVLO) (“Evelo”), a clinical-stage biotechnology company developing a new modality for oral drug delivery, announced pricing today announced a subscribed public offering of 4,500,000 common shares at a public offering price of $ 15.00 per share prior to subscribing for discounts and commissions. Evelo also granted subscribers a 30-day option to cover any over-allotments and to purchase up to 675,000 additional common shares. The gross proceeds of the offering, before the deduction of subscription discounts and commissions and estimated offering expenses, are expected to be approximately $ 67,500,000 million without the option of subscribers exercising their option to purchase additional shares. All shares in the offering are to be sold by Evelo. Morgan Stanley, Cowen and BMO Capital Markets are acting as joint book-running managers for the offering. The offering is expected to close on or about February 2, 2021 subject to customary closing conditions. Evelo intends to use the net proceeds of the Offering, in addition to existing cash, to: (i) continue development of EDP1815 in a Phase 2 trial in psoriasis and initiate a Phase 2 trial of EDP1815 in atopic dermatitis; ; (ii) Prepare for further development of EDP1815 in multiple Phase 3 studies in psoriasis and atopic dermatitis after receiving positive Phase 2 data; (iii) Continuation of Phase 2 and 2/3 clinical trials of EDP1815 for the treatment of SARs-CoV-2-induced hyperinflammation; (iv) Advance EDP1867 in a Phase 1b study in atopic dermatitis; (v) bring its first bacterial extracellular vesicle product candidates to the clinic, including EDP2939 for inflammation and EDP1908 for oncology; (vi) other research and development activities for additional product candidates, including promoting additional oral product candidates through preclinical development across therapeutic areas; and (vii) the remainder, if any, for working capital and other general corporate purposes. The securities described are being offered by Evelo pursuant to a shelf registration statement on Form S-3 (Reg. No. 333-231911), including a base prospectus, which was declared effective on June 6, 2019 by the Securities and Exchange Commission (“SEC”) . The securities are only offered by means of a prospectus supplement and the associated prospectus, which is part of the effective registration declaration. A preliminary prospectus addition to and describing the terms of the offering was filed with the SEC on January 28, 2021. The final prospectus for the offering will be filed with the SEC and will be available on the SEC’s website at www.sec .gov. Copies of the final Supplement and the accompanying prospectus for the securities being offered, if available, are also available from: Morgan Stanley & Co. LLC Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014 ;; or Cowen and Company, LLC, c / o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by calling (833) 297-2926. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor may a sale of these securities take place in any state or jurisdiction in which such offer, solicitation or sale is prior to Registration or illegal would qualify under the securities laws of such state or jurisdiction. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the completion and anticipated use of the proceeds of the offering. All these forward-looking statements are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those expressed or implied in such forward-looking statements. These risks and uncertainties related to fluctuations in Evelo’s share price, changes in market conditions and the satisfaction of customary closing conditions in connection with the public offering, as well as the other factors set out in the “Risk Factors” section of the Supplement and the Registration Statement above and last in Evelos quarterly report on Form 10-Q and other risks identified in Evelo’s filings with the Securities and Exchange Commission. There is no guarantee that Evelo will be able to complete the public offer on the expected terms. All information in this press release is as of the date of publication and Evelo undertakes no obligation to update this information, even if subsequent events cause its views to change, unless required by law. Contact: Evelo Biosciences Jessica Cotrone978-760-5622jcotrone@evelobio.com
