Dermata Therapeutics Raises $1.5M via Stock and Warrant Sale

TL;DR

Dermata just sold $1.5M in stock & warrants to investors, plus warrants to a placement agent.

AI Summary

Dermata Therapeutics, Inc. announced on May 17, 2024, that it entered into a Securities Purchase Agreement and a Warrant Agreement. These agreements involve the sale of approximately $1.5 million worth of its common stock and warrants to certain investors. The company also disclosed the issuance of warrants to a placement agent in connection with this private placement.

Why It Matters

This financing provides Dermata Therapeutics with additional capital, which could be crucial for funding its ongoing research and development activities or other operational needs.

Risk Assessment

Risk Level: medium — The company is raising capital through a private placement, which can dilute existing shareholders and may indicate a need for funds to continue operations.

Key Numbers

• $1.5M — Capital Raised (Through sale of common stock and warrants)

Key Players & Entities

• Dermata Therapeutics, Inc. (company) — Registrant
• May 17, 2024 (date) — Date of Report
• $1.5 million (dollar_amount) — Amount raised in securities purchase
• Securities Purchase Agreement (agreement) — Material Definitive Agreement
• Warrant Agreement (agreement) — Material Definitive Agreement

FAQ

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 per share DRMA The Nasdaq Capital M
• $32.40 — arrants "), having an exercise price of $32.40 per share, and (ii) November 20, 2023,
• $9.7665 — eries, each having an exercise price of $9.7665 per share (the " November Series Warran
• $5.16 — Warrants at a reduced exercise price of $5.16 per share in consideration for the Comp
• $2.66 million — gregate gross proceeds of approximately $2.66 million from the exercise of the Existing Warra
• $65,000 — he issuance of the New Warrants of: (i) $65,000 for its non-accountable expenses and (i
• $15,950 — s non-accountable expenses and (ii) and $15,950 for its clearing costs. The Company als
• $6 — ts will have an exercise price equal to $6.45, which represents 125% of the reduce
• $4.91 — nt will have an exercise price equal to $4.91 per share. The New Series A Warrants wi

Filing Documents

• drma_8k.htm (8-K) — 47KB
• drma_ex41.htm (EX-4.1) — 100KB
• drma_ex42.htm (EX-4.2) — 101KB
• drma_ex101.htm (EX-10.1) — 51KB
• drma_ex991.htm (EX-99.1) — 11KB
• 0001654954-24-006608.txt ( ) — 525KB
• drma-20240517.xsd (EX-101.SCH) — 6KB
• drma-20240517_lab.xml (EX-101.LAB) — 16KB
• drma-20240517_cal.xml (EX-101.CAL) — 1KB
• drma-20240517_pre.xml (EX-101.PRE) — 12KB
• drma-20240517_def.xml (EX-101.DEF) — 4KB
• drma_8k_htm.xml (XML) — 6KB

01 Entry Into a Material Definitive Agreement

Item 1.01 Entry Into a Material Definitive Agreement. On May 17, 2024, Dermata Therapeutics, Inc. (the " Company ") entered into inducement offer letter agreements (each, an " Inducement Letter ") with holders (the " Holders ") of certain of the Company's existing warrants to purchase up to an aggregate of 516,336 shares of the Company's common stock, par value $0.0001 per share (" Common Stock "), issued to the Holders on (i) May 26, 2023 (the " May 2023 Warrants "), having an exercise price of $32.40 per share, and (ii) November 20, 2023, which were issued in two separate series, each having an exercise price of $9.7665 per share (the " November Series Warrants " and together with the May 2023 Warrants, the " Existing Warrants "). Pursuant to the Inducement Letters, the Holders agreed to exercise for cash their Existing Warrants at a reduced exercise price of $5.16 per share in consideration for the Company's agreement to issue in a private placement (i) new Series A common stock purchase warrants (the " New Series A Warrants ") to purchase up to 601,174 shares of Common Stock (the " New Series A Warrant Shares ") and (ii) new Series B common stock purchase warrants (the " New Series B Warrants " and together with the New Series A Warrants, the " New Warrants ") to purchase up to 431,498 shares of Common Stock (the " New Series B Warrant Shares " and together with the New Series A Warrant Shares, the " New Warrant Shares "), as described below. The closing of the transactions contemplated pursuant to the Inducement Letters is expected to occur on or about May 21, 2024 (the " Closing Date "), subject to satisfaction of customary closing conditions. The Company expects to receive aggregate gross proceeds of approximately $2.66 million from the exercise of the Existing Warrants by the Holders, before deducting placement agent fees and other offering expenses payable by the Company. The Company intends to use the net proceeds for general corporate purposes, which

02 Unregistered Sales of Equity Securities

Item 3.02 Unregistered Sales of Equity Securities. The New Warrants, Placement Agent Warrants, New Warrant Shares and Placement Agent Warrant Shares have not been registered under the Securities Act and were offered pursuant to the exemption from registration provided in Section 4(a)(2) under the Securities Act, and Rule 506(b) promulgated thereunder. The description of the transactions contemplated by the Inducement Letters and the descriptions of the New Warrants and the Placement Agent Warrants under Item 1.01 of this Form 8-K is incorporated by reference herein.

03 Material Modifications to Rights of Security Holders

Item 3.03 Material Modifications to Rights of Security Holders. The disclosure set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference into this Item 3.03 in its entirety. 4

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 4.1 Form of New Warrant. 4.2 Form of Placement Agent Warrant. 10.1 Form of Inducement Letter. 99.1 Press Release of the Company, dated May 17, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). 5

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: May 17, 2024 DERMATA THERAPEUTICS, INC. By: /s/ Gerald T. Proehl Gerald T. Proehl President, Chairman and Chief Executive Officer 6

View Full Filing

View this 8-K filing on SEC EDGAR