Dermata Therapeutics Announces Exercise of Warrants for $2.66 Million in Gross Proceeds Priced At-the-Market Under Nasdaq Rules

SAN DIEGO, CA / ACCESSWIRE / May 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 entry into definitive agreements for the immediate exercise of certain outstanding warrants to purchase up to an aggregate of 516,336 shares of the Company's common stock, having exercise prices of $9.7665 and $32.40 per share, issued by Dermata in November 2023 (with respect to 462,945 warrants) and May 2023 (with respect to 53,391 warrants), at a reduced exercise price of $5.16 per share. The shares of common stock issuable upon exercise of the warrants are registered pursuant to effective registration statements on Form S-3 (File No. 333-275931) and on Form S-1 (333-273170). The closing of the offering is expected to occur on or about May 21, 2024, subject to satisfaction of customary closing conditions.

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

In consideration for the immediate exercise of the warrants for cash, Dermata will issue new unregistered Series A warrants to purchase up to 601,174 shares of common stock and new Series B warrants to purchase up to 431,498 shares of common stock. The new warrants will have an exercise price of $4.91 per share, will be exercisable immediately upon issuance and have a term equal to five and one-half years from the date of issuance, with respect to Series A warrants, and 24 months from the date of issuance, with respect to Series B warrants.

The gross proceeds to Dermata from the exercise of the warrants are expected to be approximately $2.66 million, prior to deducting placement agent fees and offering expenses. The Company intends to use the net proceeds 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.