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Why Is Dermata Therapeutics Stock Surging Wednesday?

Benzinga · 1d ago

Dermata Therapeutics, Inc. (NASDAQ:DRMA) stock rose Wednesday after the company disclosed that it has entered into definitive agreements for a private placement offering of around $12.4 million.

The offering included private placement of 2,022,062 common shares (or pre-funded warrants), Series C warrants, and short-term Series D warrants, all priced at $2.04 per share under Nasdaq's at-the-market rules.

The warrants, exercisable upon stockholder approval, expire in five years (Series C) and 24 months (Series D).

The offering is expected to close around December 29, 2025, with company insiders participating at the same terms as other investors.

Gross Proceeds

Dermata Therapeutics expects to raise around $4.1 million in gross proceeds from the offering, before fees and expenses.

If fully exercised, the Series C and short-term Series D warrants could provide an additional $8.3 million, though there is no guarantee the warrants will be exercised.

The company plans to use the net proceeds for general corporate purposes, including consumer research, pre-launch and launch activities for its OTC acne kit, investments or acquisitions of complementary or emerging technology companies, licensing activities, and working capital.

Warrants Amendment

The company has also agreed to amend certain outstanding warrants for 120,734 shares of common stock, originally issued on January 23, 2025, with an exercise price of $12.70 per share (adjusted for a one-for-10 reverse stock split on July 30, 2025).

Post closure, the amended warrants will have a reduced exercise price of $2.04 per share, become exercisable upon stockholder approval, and expire five years from that date.

Currently, the company has 1,175,798 shares of common stock issued and outstanding.

DRMA Price Action: Dermata Therapeutics shares were up 20.10% at $2.45 at the time of publication on Wednesday. The stock is trading near its 52-week low of $1.96, according to Benzinga Pro data.

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