Eupraxia Pharmaceuticals Inc. Files Final Prospectus and Announces Pricing of Initial Public Offering

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VICTORIA, BC, March 3, 2021 /CNW/ - Eupraxia Pharmaceuticals Inc. ("Eupraxia" or the "Company"), a Phase 2 clinical-stage biotechnology company with an innovative drug delivery technology platform, today announced that it has obtained a receipt for its final prospectus filed with the securities regulatory authorities in each of the provinces of Canada, other than Quebéc, in connection with the initial public offering (the "Offering") of 5,125,000 units of the Company (the "Units") at a price of $8.00 per Unit for gross proceeds to the Company of $41,000,000. A copy of the final prospectus in respect of the Offering is available on SEDAR at www.sedar.com.

Each Unit consists of one common share in the capital of the Company (each a "Common Share") and one-half of one common share purchase warrant of the Company (each whole common share purchase warrant, a "Warrant"). Each Warrant is exercisable into one common share of the Company (each, a "Warrant Share") at an exercise price of $11.20 per Warrant Share at any time prior to 5:00 p.m. (Toronto time) on the date that is five years following the closing of the Offering, subject to adjustment in certain events. The Warrants will include an acceleration provision, exercisable at the Company's option, if the Company's daily volume weighted average share price is greater than $22.40 for five consecutive trading days.

The Offering is being conducted on a best efforts basis by a syndicate of agents (the "Agents") led by Raymond James Ltd., as lead agent and sole bookrunner, together with BMO Nesbitt Burns Inc. and Canaccord Genuity Corp.

The Company has granted the Agents an over-allotment option (the "Over-Allotment Option"), exercisable in whole or in part, at the sole discretion of the Agents, at any time up to 30 days following the closing of the Offering, to purchase up to an additional number of Units equal to 15% of the Units sold pursuant to the Offering (the "Agents' Option Units") at a price of $8.00 per Agents' Option Unit to cover the Agents' over-allocation position, if any, and for market stabilization purposes.

The closing of the Offering is expected to occur on or about March 9, 2021 (the "Closing Date") and is subject to customary closing conditions, including the receipt of all necessary regulatory approvals. The Toronto Stock Exchange ("TSX") has conditionally approved the listing of both the Common Shares and the Warrants under the symbols "EPRX" and "EPRX.WT", respectively. Listing is subject to the Company fulfilling all of the requirements of the TSX on or before May 25, 2021, including distribution of these securities to a minimum number of public shareholders.

No securities regulatory authority has either approved or disapproved of the contents of this press release. The Common Shares, Warrants and Warrant Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws. Accordingly, the Common Shares, Warrants and Warrant Shares may not be offered or sold, directly or indirectly, in the United States, except pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful

About Eupraxia

Eupraxia is a clinical-stage biotechnology company focused on the development of locally delivered, extended-release alternatives to currently approved drugs. Each of Eupraxia's product candidates has the potential to address therapeutic areas with high unmet medical need, and strives to provide improved patient benefit by delivering targeted, long-lasting activity with fewer side effects.

Eupraxia's lead product candidate, EP-104IAR, is currently in Phase 2 development for the treatment of pain due to osteoarthritis of the knee.  In addition to EP-104IAR, Eupraxia is developing a pipeline of earlier-stage long-acting formulations. Potential pipeline candidates include a range of drugs for indications such as post-surgical pain (EP-105), and post-surgical site infections (EP-201), each designed to improve on the activity and tolerability of approved drugs. Eupraxia is also developing a formulation of EP-104IAR for use in canine and equine osteoarthritis.

Notice Regarding Forward-looking Statements and Information:

This news release includes forward-looking statements and forward–looking information within the meaning of Canadian securities laws. Often, but not always, forward–looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward looking statements in this press release include statements regarding the Offering, including the successful completion of the Offering, the Closing Date of the Offering, the Company fulfilling the TSX listing requirements, the Company's plans, focus and objectives and the potential of Eupraxia's product candidates. Such statements and information are based on the current expectations of Eupraxia's management, and are based on assumptions and subject to risks and uncertainties. Although Eupraxia's management believes that the assumptions underlying these statements and information are reasonable, they may prove to be incorrect. The forward–looking events and circumstances discussed in this news release may not occur by certain dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Eupraxia, including the risk factors set forth in the Company's final prospectus under the heading "Risk Factors". Although Eupraxia has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward–looking statements and information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward–looking statement or information can be guaranteed. Except as required by applicable securities laws, forward–looking statements and information speak only as of the date on which they are made and Eupraxia undertakes no obligation to publicly update or revise any forward–looking statement or information, whether as a result of new information, future events or otherwise.

SOURCE Eupraxia Pharmaceuticals Inc.

For media inquiries, please contact: Vik Peck, Eupraxia Pharmaceuticals Inc., 250.590.3968 ext. 508, [email protected]; For investor inquiries, please contact: Adam Peeler, on behalf of: Eupraxia Pharmaceuticals Inc., 416.427.1235, [email protected]