• The proceeds are intended to be used for working capital and other general corporate purposes.
• The computational chemistry company expects the transaction to close on or about Wednesday. 
• Earlier on Tuesday, the company announced an expanded collaboration with Google Cloud to integrate advanced AI agents into its ChemPass AI platform using Vertex AI.

Shares of Evogene Ltd. (EVGN) fell more than 14% on Tuesday after the company announced that it had entered into a warrant inducement agreement with an existing institutional investor.

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The existing warrants would be exercised at a reduced price of $1.00 for total gross cash proceeds of approximately $3.4 million, before deducting financial advisor fees and other transaction expenses, the company said.

The proceeds are intended to be used for working capital and other general corporate purposes.

The computational chemistry company expects the transaction to close on or about Wednesday.

Deal Details

Evogene said the transaction would include the immediate exercise of August 2024 Series A ordinary warrants to purchase up to 1,692,308 ordinary shares and August 2024 Series B ordinary warrants to purchase up to 1,692,308 ordinary shares.

In return for these existing warrants being exercised, the investor will receive new unregistered warrants in a private placement, the company said. These new warrants will allow the purchase of up to 5,076,924 additional ordinary shares at an exercise price of $1.25 per share.

The new Series A-1 warrants and the Series B-1 warrants will expire in five years and 18 months respectively. Both will be immediately exercisable upon issuance.

About Evogene

Evogene is an Israel-based micro-cap computational chemistry company that specializes in the use of artificial intelligence (AI) for the discovery and development of life-science-based products.

The company uses its proprietary ChemPass AI platform to generatively design novel, high-potency small molecules for pharma and agriculture.

Earlier on Tuesday, the company announced an expanded collaboration with Google Cloud to integrate advanced AI agents into its ChemPass AI platform using Vertex AI.

The deal aims to automate workflows, accelerate small-molecule discovery, improve accuracy and efficiency, and build on a prior generative AI model partnership to strengthen Evogene’s pharma and agriculture innovation pipeline.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around EVGN shares was in the ‘extremely bullish’ territory at the time of writing amid ‘extremely high’ message volumes.

Shares of EVGN have declined more than 33% in the past year.

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