Dermata Therapeutics Announces Closing of $3.5 Million Private Placement Priced At-The-Market Under Nasdaq Rules

Dermata raises approximately $7.8 million in gross proceeds since May 2024 - expected to fund its operations into the second quarter of 2025

SAN DIEGO, CA / ACCESSWIRE / September 17, 2024 / Dermata Therapeutics, Inc. (NASDAQ:DRMA)(NASDAQ:DRMAW) ("Dermata," or the "Company"), a late-stage biotechnology company focused on the treatment of medical and aesthetic skin diseases and conditions, today announced the closing of its previously announced private placement for the issuance and sale of an aggregate of 1,912,569 shares of common stock (or pre-funded warrant in lieu thereof) and accompanying series A warrants to purchase up to 1,912,569 shares of common stock and short-term series B warrants to purchase up to 1,912,569 shares of common stock at a purchase price of $1.83 per share of common stock (or per pre-funded warrant in lieu thereof) and accompanying series warrants priced at-the-market under the rules of the Nasdaq Stock Market. The gross proceeds from the offering were approximately $3.5 million, prior to deducting placement agent's fees and other offering expenses payable by the Company. The series A warrants and series B warrants have an exercise price of $1.58 per share and are exercisable immediately upon issuance. The series A warrants expire five and one-half years from the issuance date and the series B warrants expire eighteen months from the issuance date.

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

Including the gross proceeds from this offering, the Company has raised approximately $7.8 million in gross proceeds since May 2024. The net proceeds from this offering, together with the Company's cash on hand are expected to fund its operations into the second quarter of 2025. The Company intends to use the net proceeds from the offering for general corporate purposes which includes, without limitation, ongoing research and pre-clinical studies, clinical trials, the development of new biological and pharmaceutical technologies, investing in or acquiring companies that are synergistic with or complementary to the Company's technologies, licensing activities related to the Company's current and future product candidates, and to the development of emerging technologies, investing in or acquiring companies that are developing emerging technologies, licensing activities, or the acquisition of other businesses and working capital.