Dermata Therapeutics Issues 2,022,062 Shares, Raises Approximately $4.1M

Dermata Therapeutics entered into definitive agreements for the issuance and sale of an aggregate of 2,022,062 shares of common stock, series C warrants to purchase up to 2,022,062 shares of common stock and short-term series D warrants to purchase up to 2,022,062 shares of common stock at a purchase price of $2.04 per share of common stock and accompanying warrants in a private placement priced at-the-market under the rules of the Nasdaq Stock Market. The series C warrants and the series D warrants will have an exercise price of $2.04 per share and will be exercisable beginning on the effective date of stockholder approval of the issuance of the shares issuable upon exercise of the warrants. The series C warrants will expire five years from the effective date of stockholder approval and the series D warrants will expire twenty-four months from the effective date of stockholder approval. The closing of the offering is expected to occur on or about December 29, subject to the satisfaction of customary closing conditions. Company insiders, including the Company's CEO, CFO and certain members of the Company's management team, are participating in the offering. H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering. The gross proceeds from the offering are expected to be approximately $4.1M, prior to deducting placement agent's fees and other offering expenses payable by the Company. The potential additional gross proceeds to the Company from the series C warrants and the short-term series D warrants, if fully exercised on a cash basis, will be approximately $8.3M.