Grace Therapeutics Announces $10M Private Placement of Common Stock

What Happened

• Grace Therapeutics, Inc. announced a private placement of 4,761,904 shares of its common stock at $2.10 per share. The Offering closed on August 6, 2026 and produced gross proceeds of approximately $10 million before placement agent fees and other offering expenses. Craig‑Hallum Capital Group LLC acted as placement agent.
• The Company entered into a Securities Purchase Agreement and a Registration Rights Agreement with the investors. Grace agreed to file and use reasonable best efforts to have a resale registration statement declared effective promptly (specific timing tied to whether the SEC elects to review the filing) and to keep that registration effective until the shares are sold or can be resold under Rule 144 without restriction. A press release announcing the Offering was issued on August 4, 2026.

Key Details

• Shares sold: 4,761,904 common shares at $2.10 per share.
• Gross proceeds: ~ $10.0 million (before placement agent fees and expenses).
• Placement agent: Craig‑Hallum Capital Group LLC; Company will pay customary placement fees.
• Registration & resale: Company must file a registration statement and use reasonable best efforts to have it declared effective (no later than the earlier of 60 days after initial filing if SEC will review, or 5 business days after notified it will not be reviewed) and keep it effective until resale or Rule 144 eligibility.
• Transfer restrictions: Company generally may not issue additional shares or take certain recapitalization actions until the later of (a) 90 days after the Closing Date or (b) 30 days after the registration statement is effective (subject to certain exceptions).
• Securities law basis: Shares were issued in a private sale to accredited/institutional investors under Section 4(a)(2) and Rule 506 exemptions.

Why It Matters

• The transaction provides Grace with fresh capital — roughly $10M gross — which can support operations, development programs or other corporate needs (net proceeds will be reduced by fees and expenses).
• The new issuance increases the number of outstanding shares and therefore may dilute existing shareholders’ percentage ownership.
• The Registration Rights Agreement should allow the new investors to resell their shares once the registration statement is effective or Rule 144 conditions are met, improving liquidity for those investors.
• Short-term limits on issuing additional shares or certain corporate actions provide some issuance stability for the holders from this round until the specified lock-up periods expire.