Evoke Pharma (NASDAQ:EVOK) Inc, a pharmaceutical company, has entered into a Seventh Amendment to Lease with SB Corporate Centre III-IV, LLC, extending the term of its headquarters lease in Solana Beach, California. This agreement, signed on Tuesday, ensures the company's continued presence at 420 Stevens Avenue, Suite 230, through March 31, 2027.
The details of the amendment outline a structured increase in base monthly rent over the extended period. Starting November 1, 2024, the rent will be $6,456.95, followed by an increase to $6,650.66 for the subsequent year, and finally reaching $6,850.18 from November 1, 2026, until the end of the lease term. Additionally, Evoke Pharma will be responsible for a specified percentage of certain expenses incurred by the landlord.
As a part of the agreement, the company will also benefit from a one-month rent abatement in November 2024, provided it maintains good standing under the terms of the lease without any material default.
The lease extension comes as a significant update for Evoke Pharma, which has been located at the Solana Beach address since December 19, 2016. The company's decision to remain at this location for an additional two and a half years reflects its commitment to its current operational base.
Evoke Pharma's business operations focus on the development of drugs within the pharmaceutical preparations sector, as classified under the Standard Industrial Classification code 2834. The company, incorporated in Delaware, is publicly traded on The Nasdaq Stock Market under the ticker symbol NASDAQ:EVOK.
InvestingPro Insights
Evoke Pharma's recent lease extension aligns with its current financial position and future prospects. According to InvestingPro data, the company's market capitalization stands at $4.37 million USD, reflecting its status as a small-cap pharmaceutical firm. Despite its modest size, Evoke Pharma has shown impressive revenue growth, with a 110.79% increase over the last twelve months as of Q2 2024, and a notable 125.51% quarterly growth in Q2 2024.
InvestingPro Tips highlight that Evoke Pharma holds more cash than debt on its balance sheet, which could explain its confidence in committing to a longer lease term. This financial stability is crucial for a company in the pharmaceutical sector, where research and development costs can be substantial.
However, investors should note that the company is not currently profitable, with a negative operating income of $6.22 million USD over the last twelve months. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Evoke Pharma, providing a more comprehensive view of the company's financial health and market position.
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