Ms. Danielle Egan reports

EUPRAXIA PHARMACEUTICALS ANNOUNCES PROPOSED PUBLIC OFFERING OF COMMON SHARES

Eupraxia Pharmaceuticals Inc. has filed a preliminary prospectus supplement to its short form base shelf prospectus dated Feb. 5, 2024, in connection with a proposed public offering of common shares of the company. The supplement was also filed with the U.S. Securities Exchange and Commission (SEC), as part of a registration statement on Form-10, as amended, which was declared effective by the SEC on Feb. 7, 2024, in accordance with the multijurisdictional disclosure system established between Canada and the United States.

The company also expects to grant the underwriters a 30-day option to purchase up to an additional 15 per cent of the number of common shares offered in the offering. The offering is expected to be priced in the context of the market, with the final terms of the offering to be determined at the time of pricing. There can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. The closing of the offering will be subject to customary closing conditions, including the listing of the common shares on the Toronto Stock Exchange and the Nasdaq Capital Market, and any required approvals of the TSX.

Cantor and LifeSci Capital are acting as joint bookrunning managers for the offering. Bloom Burton is also acting as co-manager for the offering.

The company intends to use the net proceeds from the offering primarily for the continued advancement of its product pipeline, including the completion of continuing preclinical studies and clinical trials, regulatory submissions, and associated commercial preparation and manufacturing scale-up activities. A portion of the proceeds will also be allocated to research and development of additional pipeline candidates, business development initiatives, and general corporate purposes, which may include, but are not limited to, employee salaries, working capital, leases for facilities, administrative expenses and capital expenditures. The company may also use a portion of the proceeds to expand its intellectual property portfolio and strengthen its corporate infrastructure to support future growth.

The supplement and accompanying base prospectus contain important detailed information about the offering. The supplement and accompanying base prospectus relating to and describing the terms of the offering can be found on SEDAR+ and on EDGAR. Copies of the supplement and accompanying base prospectus relating to and describing the terms of the offering may also be obtained from Cantor Fitzgerald & Co., attention: capital markets, at 110 East 59th St. (sixth floor), New York, N.Y., 10022, or by e-mail at prospectus@cantor.com, from LifeSci Capital LLC at 1700 Broadway (40th floor), New York, N.Y., 10019, or by e-mail at compliance@lifescicapital.com, or from Bloom Burton Securities Inc. at ecm@bloomburton.com. Prospective investors should read the supplement and accompanying base prospectus and the other documents the company has filed before making an investment decision.

About Eupraxia Pharmaceuticals Inc.

Eupraxia is a clinical-stage biotechnology company focused on the development of locally delivered, extended-release products that have the potential to address therapeutic areas with high unmet medical need. Diffusphere, a proprietary, polymer-based microsphere technology, is designed to facilitate targeted drug delivery of both existing and novel drugs.

We seek Safe Harbor.