eFFECTOR Therapeutics Announces $15 Million Registered Direct Offering Priced At-The-Market Under Nasdaq Rules

SOLANA BEACH, Calif. and REDWOOD CITY, Calif., Jan. 25, 2024 (GLOBE NEWSWIRE) -- eFFECTOR Therapeutics, Inc. (NASDAQ: EFTR) (the “Company”), a leader in the development of selective translation regulator inhibitors (“STRIs”) for the treatment of cancer, today announced that it has entered into a definitive agreement with a single healthcare focused institutional investor for the purchase and sale of an aggregate of 1,488,834 shares of its common stock (or common stock equivalents in lieu thereof) and warrants to purchase up to an aggregate of 1,488,834 shares of its common stock at an offering price of $10.075 per share of common stock (or common stock equivalent in lieu thereof) and accompanying warrant, in a registered direct offering priced at-the-market under Nasdaq rules. The warrants will be exercisable immediately upon issuance, have an exercise price of $9.95 per share and expire three and one half years from the date of issuance. The closing of the offering is expected to occur on or about January 29, 2024, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The gross proceeds to the Company from the offering are expected to be approximately $15 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from this offering, together with its existing cash and cash equivalents and short-term investments, for general corporate and working capital purposes, including funding our research and development.

The securities described above are being offered and sold by the Company in a registered direct offering pursuant to a “shelf” registration statement on Form S-3 (File No. 333-267221) that was originally filed with the Securities and Exchange Commission (the “SEC”) on September 1, 2022 and became effective on September 9, 2022. The offering of such securities in the registered direct offering is being made only by means of a base prospectus and prospectus supplement that forms a part of the effective registration statement. A final prospectus supplement and the accompanying base prospectus relating to the registered direct offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying base prospectus may also be obtained, when available, from H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at [phone] or e-mail at [e-mail].