Dermata Therapeutics secures $2.55 million in private placement

SAN DIEGO - Dermata Therapeutics , Inc. (NASDAQ:DRMA)(NASDAQ:DRMAW), a biotech firm specializing in skin disease treatments, has announced a private placement transaction involving the sale of over 2 million shares and warrants. The deal, set to close around January 23, 2025, is expected to yield approximately $2.55 million in gross proceeds before fees and expenses. According to InvestingPro data, the company's current market capitalization stands at $2.59 million, with analysis suggesting the stock may be undervalued at current levels.

Key insiders, including the CEO, CFO, and board members, are participating in the offering at the same terms as external investors. Each share and accompanying warrant is priced at $1.27, with the warrants exercisable upon stockholder approval and valid for five years thereafter. InvestingPro analysis reveals the company maintains a healthy current ratio of 3.44, indicating strong short-term liquidity position.

H.C. Wainwright & Co. is the exclusive placement agent for this offering. Dermata plans to allocate the net proceeds to general corporate purposes, which encompass research, clinical trials, and potential strategic investments or acquisitions.

The securities sold in this placement, which includes shares and warrants, as well as the shares issuable upon the exercise of the warrants, have not been registered under the Securities Act of 1933. They are therefore subject to restrictions on their sale in the U.S. without registration or an applicable exemption. Dermata has agreed to file a resale registration statement for these securities.

This funding move comes as Dermata continues to develop its lead product candidate, Xyngari™, derived from its Spongilla technology platform. Xyngari™ is a topical treatment being explored for acne, psoriasis, and rosacea, and is part of Dermata's broader efforts to innovate in the treatment of medical and aesthetic skin conditions. InvestingPro subscribers have access to 11 additional exclusive insights about Dermata's financial health and market performance, essential for understanding the company's development trajectory.

The information in this article is based on a press release statement from Dermata Therapeutics.

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