Evelo Jumps on Unveiling Direct Offering

Evelo Biosciences, Inc. (NASDAQ: EVLO) reported its share prices rocket soon after Wednesday’s open.

The company, a clinical stage biotechnology company developing a new modality of orally delivered medicines, today announced that it has entered into a securities purchase agreement with investors in a registered direct offering of 54,246,358 shares of common stock at a purchase price of $1.46 per share, resulting in gross proceeds of $79.2 million.

The offering is being led by Evelo’s founder, Flagship Pioneering, with participation from other new and existing investors.

The offering is expected to close on Friday, subject to customary closing conditions. Since this offering is being made without an underwriter or a placement agent, Evelo will not be paying any underwriting discounts in connection with the transaction.

Evelo intends to use the net proceeds from the offering to continue the development of EDP1815 in a Phase 2 trial in atopic dermatitis; prepare to advance EDP1815 in registration trials in psoriasis and, upon receipt of positive Phase 2 data, atopic dermatitis; and progress its first bacterial extracellular vesicle (EV) product candidate EDP2939 into the clinic.

EVLO shares opened the session up 18 cents, or 12.3%, to $1.64.