Dermata Therapeutics, Inc. ("Dermata," or the "Company") (NASDAQ:DRMA) and (NASDAQ:DRMAW), a clinical-stage biotechnology company focusing on the treatment of medical and aesthetic skin conditions, today announced that it has entered into a securities purchase agreement with a single institutional investor to purchase approximately $5.0 million of its common stock (or pre-funded warrants to purchase common stock in lieu thereof) and warrants, in a private placement priced at-the-market under Nasdaq rules.

Each share of common stock (or pre-funded warrant in lieu thereof) is being sold together with one warrant to purchase one share of common stock at a combined purchase price of $1.325. Under the terms of the securities purchase agreement, Dermata has agreed to sell 3,773,585 shares of common stock (or pre-funded warrants in lieu thereof) and warrants to purchase up to an aggregate of 3,773,585 shares of common stock. The warrants will be exercisable for a period of five years from the date of issuance and have an exercise price of $1.325 per share. The closing of the private placement is expected to occur on or about April 25, 2022, subject to the satisfaction of certain customary closing conditions set forth in the securities purchase agreement.

Maxim Group LLC is acting as the sole placement agent for the offering.

Dermata currently intends to use the net proceeds from the offering for working capital and general corporate purposes.