Davis-based Pharmaceutical Company Looks To Raise $15.7 Million

Source: Sacramento Business Journal, Felicia Alvarez
Photo: Expanesthetics is raising funds to bring its inhaled anesthetic product to human clinical trials. (ISTOCK)

Davis-based Expanesthetics Inc. is looking to raise funds again to fuel its research into anesthetics.

Expanesthetics develops new forms of general anesthetic for surgeries and pain relievers that serve as alternatives to opioids. That includes research into a new type of anesthetic that can be inhaled, which the company says can have fewer side effects.

The company gave notice earlier this month of a $15.7 million private offering of company stock and warrants, about $110,000 of which has already been sold as of Oct. 6, according to a recent filing with the Securities and Exchange Commission. As of Oct. 22, Expanesthetics has accepted over $365,000 in subscriptions, according to the company.

Expanesthetics is largely looking to the medical community for smaller-sized investments. On its website, the company is soliciting anesthesiologists to invest as little as $10,000 toward its inhaled anesthetic research. The company says that it has had more than 80 anesthesia clinicians invest to date, and that those clinicians compose a majority of the company’s shareholders.

“We’ve structured this offering to be attractive to prospective investors by including warrants along with share of stock,” said Landon Ellis, Expanesthetics’ chief communication officer, in a prepared statement.

The warrants are structured to allow participants to buy 20% more stock at the current price anytime before the end of 2024, Ellis said.

The funds from the $15.7 million offering will help get the company’s anesthetic to human clinical trials, and will also provide dollars for its non-opiate pain reliever research, according to a news release.

“After years of foundational development, Expanesthetics is poised to scale our anesthetic screening technology toward identification and advancement of a candidate through first-in-human trials,” said Mark Holman, CEO of Expanesthetics, in a prepared statement.

https://www.bizjournals.com/sacramento/news/2020/10/27/expanesthetics-raising-funds-for-research