Evoke Pharma (NASDAQ:EVOK) Inc, a pharmaceutical company, announced the appointment of Benjamin Smeal as a Class II director, effective as of last Thursday. The decision, made by the company's Board of Directors, will see Mr. Smeal serve until the 2027 annual meeting of stockholders.
Mr. Smeal, 46, is a seasoned investor with experience managing assets for high-profile entities, including the family office of Michael R. Bloomberg. His previous roles include Associate Director at Willett Advisors and Senior Investment Analyst at Kenmare Management. He also has board experience with ImageWare Systems (OTC:IWSY), Inc. and Owens Realty Mortgage, Inc.
In line with Evoke Pharma's non-employee director compensation program, Mr. Smeal received options to purchase 5,833 shares of the company's common stock on the date of his appointment. These options will vest over the next three years. Additionally, he will receive cash compensation as per the company's established guidelines.
Mr. Smeal's appointment is a result of a letter agreement with Nantahala Capital Management, LLC, dated September 27, 2024. The Board has confirmed Mr. Smeal's independence in accordance with Nasdaq Capital Market listing requirements. There are no disclosed transactions involving Mr. Smeal that would necessitate reporting under SEC regulations.
The new director will serve on several committees, including the Audit Committee, Compensation Committee, and the Nominating and Corporate Governance Committee. This strategic move aims to leverage Mr. Smeal's investment acumen and governance expertise to bolster Evoke Pharma's board effectiveness.
This information is based on a press release statement filed with the SEC.
In other recent news, Evoke Pharma has seen a series of significant developments. The company has secured approximately $3 million from the exercise of existing warrants, which will bolster the commercialization efforts of its flagship product, GIMOTI. In a related move, Evoke Pharma has also amended terms with warrant holders, leading to an expected $2.4 million in gross proceeds. Notably, Nantahala Capital Management, a result of the warrant exercise, has earned the right to nominate two members to Evoke Pharma's board of directors.
The company has also appointed Ben Smeal, an expert in investment management and corporate governance, to its board of directors. Smeal's appointment is seen as a positive step towards the company's growth and the expansion of GIMOTI, Evoke's nasal spray for diabetic gastroparesis.
Evoke Pharma has also secured a lease extension for its headquarters in Solana Beach, California, ensuring its continued presence there until March 2027.
InvestingPro Insights
As Evoke Pharma Inc. welcomes Benjamin Smeal to its board, InvestingPro data provides additional context to the company's financial position. Despite a market capitalization of just $4.49 million, Evoke Pharma has shown impressive revenue growth, with a 110.79% increase over the last twelve months as of Q2 2024. This aligns with one of the InvestingPro Tips, which indicates that analysts anticipate sales growth in the current year.
However, the company faces profitability challenges. An InvestingPro Tip notes that Evoke Pharma has not been profitable over the last twelve months, with a negative operating income of $6.22 million. This financial situation underscores the importance of Mr. Smeal's investment expertise as the company navigates its growth trajectory.
On a positive note, another InvestingPro Tip reveals that Evoke Pharma holds more cash than debt on its balance sheet, potentially providing financial flexibility as it pursues its strategic objectives. Investors interested in a more comprehensive analysis can access 7 additional InvestingPro Tips for Evoke Pharma, offering deeper insights into the company's financial health and market position.
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