DERMATA THERAPEUTICS, INC. : Entry into a Material Definitive Agreement, Unregistered Sale of Equity Securities, Other Events, Financial Statements and Exhibits (form 8-K)

Item 1.01 Entry Into a Material Definitive Agreement.

On April 20, 2022, Dermata Therapeutics, Inc., a Delaware corporation (the "Company"), entered into a Securities Purchase Agreement ("Purchase Agreement") with an institutional investor (the "Purchaser") pursuant to which the Purchaser agreed to purchase, and the Company agreed to issue and sell to the Purchaser in a private placement, an aggregate of 898,585 shares ("Shares") of the Company's common stock, $0.0001 par value ("Common Stock"), pre-funded warrants to purchase up to 2,875,000 shares of Common Stock (the "Pre Funded Warrants") and warrants (the "Common Stock Warrants" and together with the Pre Funded Warrants, the "Warrants") to purchase up to 3,773,585 shares of Common Stock (the "Private Placement"). The purchase price per Share and associated Common Stock Warrant was $1.325 and the purchase price per Pre Funded Warrant and associated Common Stock Warrant was $1.3249. Each Common Stock Warrant entitles the holder to purchase one share of Common Stock at an exercise price of $1.325 per share. Each Pre Funded Warrant entitles the holder to purchase one share of Common Stock at an exercise price of $0.0001 per share. The Common Stock Warrants are exercisable for a period of five years commencing on the issuance date and the Pre Funded Warrants are exercisable until exercised. The Warrants also contain customary beneficial ownership limitations that may be waived at the option of each holder upon 61 days' notice to the Company. The Private Placement closed on April 25, 2022. The gross proceeds to the Company, before deducting placement agent fees and other offering expenses, are approximately $5.0 million.

The Purchase Agreement includes standard representations, warranties and covenants of the Company and Purchaser.

The Company intends to use the net proceeds from the Private Placement for general working capital and general corporate purposes.

On April 20, 2022, in connection with the Private Placement, the Company entered into a registration rights agreement (the "Registration Rights Agreement") with the Purchaser, pursuant to which the Company agreed to file a registration statement on Form S-1 with the Securities and Exchange Commission (the "SEC") to register for resale the Shares and any shares of the Company's common stock issuable upon exercise of the Warrants within 15 days of the closing of the Private Placement, with such registration statement becoming effective within 45 days after the closing of the Private Placement, subject to adjustment in the event of a review by the SEC. The Company is subject to customary penalties and liquidated damages in the event it does not meet certain filing requirements and deadlines set forth in the Registration Rights Agreement.

Pursuant to a placement agent agreement (the "Placement Agent Agreement"), Maxim Group, LLC (the "Placement Agent') was engaged by the Company to act as its placement agent for the Private Placement. The Company agreed to pay the Placement Agent a cash fee equal to 7.0% of the gross proceeds received by the Company in the Private Placement, in addition to the reimbursement of certain expenses.

The foregoing descriptions of the Purchase Agreement, the Common Stock Warrants, the Pre Funded Warrants, the Registration Rights Agreement and the Placement Agent Agreement do not purport to be complete and are qualified by reference to the full text of such agreements, which are attached to this Current Report on Form 8-K as Exhibits 4.1, 4.2, 10.1, 10.2 and 10.3, respectively, and are incorporated herein by reference.

Item 3.02 Unregistered Sales of Equity Securities.

The disclosures set forth in Item 1.01 above related to the Private Placement are incorporated by reference into this Item 3.02. The Shares, the Warrants and the shares of Common Stock underlying the Warrants have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), pursuant to the Registration Statement and are instead being offered pursuant to the exemption provided in Section 4(a)(2) under the Securities Act and Rule 506(b) promulgated thereunder.

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Item 8.01 Other Information.

On April 21, 2022, the Company issued a press release announcing the Private Placement and on April 25, 2022 the Company issued a press release announcing the closing of the Private Placement. Copies of the press releases are attached to this Current Report on Form 8-K as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.



Exhibit No.                                 Exhibit
  4.1           Form of Common Stock Warrant
  4.2           Form of Pre Funded Warrant
                Form of Securities Purchase Agreement dated April 20, 2022 between
  10.1        the Company and the Purchaser
                Form of Registration Rights Agreement dated April 20, 2022 between
  10.2        the Company and the Purchaser
                Form of Placement Agent Agreement dated April 20, 2022 between the
  10.3        Company and the Placement Agent.
  99.1          Press release, dated April 21, 2022, issued by Dermata
              Therapeutics, Inc.
  99.2          Press release, dated April 25, 2022, issued by Dermata
              Therapeutics, Inc.
104           Cover Page Interactive Data File (embedded within the Inline XBRL
              document).





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