Evoke Pharma (EVOK) Registration Filing summary

Company overview and business model

• Specializes in developing and commercializing drugs for gastrointestinal disorders, with a focus on Gimoti, a nasal spray for diabetic gastroparesis approved by the FDA in June 2020 and launched in October 2020 through a partnership with Eversana.

• Gimoti is the only nasally-administered product for acute and recurrent diabetic gastroparesis, offering reduced healthcare utilization and costs compared to oral alternatives.

• Operations have been primarily funded through equity sales, loans, and public offerings, with modest sales generated since product launch.

Financial performance and metrics

• As of August 28, 2024, public float was approximately $5.77 million, with 819,272 shares outstanding and 814,354 held by non-affiliates.

• Net tangible book value as of June 30, 2024, was $2.7 million ($3.63 per share); post-offering, this would increase to $4.6 million ($3.92 per share), with immediate dilution of $0.49 per share to new investors at an assumed offering price of $4.41.

• Outstanding warrants and options could further dilute shareholders if exercised.

Use of proceeds and capital allocation

• Net proceeds from offerings will be used for working capital, general corporate purposes, and commercialization activities.

• May allocate a portion to in-license, acquire, or invest in complementary businesses, technologies, or products, though no current commitments exist.

• Management has broad discretion over the use of proceeds.