07:49 AM EDT, 08/02/2024 (MT Newswires) -- Eupraxia Pharmaceuticals ( EPRX ) , a clinical-stage biotechnology company, on Friday announced entry into a new $12 million convertible debt facility.

Under the Convertible Debt Facility, Yabema Capital Limited and other current Eupraxia shareholders will make available for drawdown an aggregate amount of $12 million for a period of 120 days following entry into the agreement.

The aggregate unpaid principal amount and any accrued and unpaid interest thereon will be convertible at each individual lender's discretion into Eupraxia common shares, at a conversion price equal to $4.84375 per Common Share.

"The new convertible debt facility provides an important source of additional funding from long term, supportive investors, and creates greater stability to Eupraxia's cap structure as we continue to advance our clinical programs in eosinophilic esophagitis and osteoarthritis," said CEO Dr. James Helliwell in a statement.