Evelo Biosciences announces $25.5M private placement

Evelo Biosciences “announced that it has entered into a securities purchase agreement with investors in a private placement to sell 11,025,334 shares of its common stock at a purchase price of $2.31 per share, which would result in gross proceeds of approximately $25.5 million. The offering is being led by Evelo’s founder, Flagship Pioneering, with participation from other new and existing investors. Evelo intends to use the net proceeds from the private placement to fund the readout of its Phase 2a trial of EDP2939 in moderate psoriasis, to pay down approximately $5.0 million of its existing debt and for general corporate purposes. BMO Capital Markets acted as the sole placement agent for the private placement.”