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Latham & Watkins Advises eFFECTOR Therapeutics in US$7.5 Million Registered Direct Offering

May 26, 2023
Capital markets team represents the clinical-stage biopharmaceutical company.

eFFECTOR Therapeutics, Inc. (NASDAQ: EFTR), a leader in the development of selective translation regulator inhibitors (STRIs) for the treatment of cancer, has announced that it has entered into a definitive agreement with a single healthcare-focused institutional investor for the purchase and sale of an aggregate of 11,450,382 shares of its common stock (or common stock equivalents in lieu thereof), in a registered direct offering priced at-the-market under Nasdaq rules. The Company has also agreed to issue in a concurrent private placement unregistered warrants to purchase up to an aggregate of 11,450,382 shares of common stock.  The closing of the offering is expected to occur on or about May 31, 2023, subject to the satisfaction of customary closing conditions.

Latham & Watkins LLP advised eFFECTOR Therapeutics in the offering, with a capital markets team led by San Diego partners Matt Bush and Cheston Larson, and counsel Anthony Gostanian, with associates Shelby Harrison and Sterling Swift.