EUPRAXIA PHARMACEUTICALS INC.

Yabema Capital

On August 1, 2024, the Company entered into a $8,659,200 (CDN$12,000,000) convertible debt facility (“Convertible Debt Facility”). Under the Convertible Debt Facility, the Lenders will make available for drawdown an aggregate amount of CDN$12,000,000 for a period of 120 days following entry into the agreement. The Convertible Debt Facility was to mature 24 months from August 1, 2024 (the closing date) and could be extended for an additional 12 months at the Lenders’ option. The decision to draw on the facility within 120 days of closing was at the discretion of Eupraxia and was subject to the full and final release of the Debt Agreement.

The aggregate unpaid principal amount and any accrued and unpaid interest thereon will be convertible at the discretion of the lenders into Eupraxia common shares at a conversion price equal to CDN$4.84375 per common share.

The Company granted the Lenders a security interest in all of its assets, excluding its patents and other intellectual property.

As a result of the closing of the Private Placement, on October 31, 2024, the Company entered into the Termination Agreement with the Lenders to terminate the Convertible Debt Facility and discharge all security interests. Commitment fees of $355,582 (CDN$480,000) that were treated as a prepaid expense have been included in the Consolidated Statement of Operations and Comprehensive Loss.