COPENHAGEN - Evaxion Biotech A/S (NASDAQ: EVAX), a clinical-stage company focused on AI-powered immunotherapies, has announced the pricing of its public offering. The company is offering 3,750,000 American Depositary Shares (ADSs) and warrants to purchase an equivalent number of ADSs at a price of $4.00 each. The offering includes pre-funded warrants as an alternative to ADSs for certain investors.
The warrants, exercisable immediately upon issuance at the same price of $4.00 per ADS, will expire five years from the date of issuance. Each ADS represents ten ordinary shares of Evaxion. The closing of the offering is anticipated around February 5, 2024, subject to customary closing conditions.
MSD Global Health Innovation Fund, part of Merck & Co., which became a shareholder in Evaxion in December 2023, is participating in this offering. The gross proceeds are expected to be $15 million before fees and expenses are deducted. Evaxion intends to use the net proceeds to advance its clinical and preclinical pipelines, as well as for operating expenses and working capital.
H.C. Wainwright & Co. is the exclusive placement agent for this offering. The securities are offered pursuant to a registration statement on Form F-1, which the SEC declared effective on February 1, 2024.
Evaxion's AI-Immunology™ platform is designed to harness artificial intelligence for the development of novel immunotherapies for cancer, bacterial diseases, and viral infections. The company aims to transform patient care with innovative and targeted treatments.
This news is based on a press release statement and the offering is made only by means of a prospectus. The final prospectus, when available, will be accessible on the SEC's website. This press release is not an offer to sell or a solicitation of an offer to buy any securities, and there will be no sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
InvestingPro Insights
As Evaxion Biotech navigates through its latest public offering, real-time data and insights from InvestingPro provide a deeper understanding of the company's financial health. With a market capitalization of $19.26 million and a negative price-to-earnings (P/E) ratio of -0.65 for the last twelve months as of Q3 2023, Evaxion's financial challenges are apparent. The company has not been profitable over the last year, which is reflected in its significant price drop, with a 1-month total return of -42.69% and a 6-month total return of -68.81%. Additionally, the company's price/book ratio stands at 6.28, indicating a potentially higher valuation compared to its book value.
InvestingPro Tips highlight critical considerations for investors. Analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism about Evaxion's future performance. However, the company's rapid cash burn and weak gross profit margins present significant risks. Furthermore, the stock's high price volatility could mean a bumpy ride for shareholders. With these factors in mind, investors should be aware that analysts do not expect Evaxion to be profitable this year.
For those considering a deeper dive into Evaxion's financials and future prospects, InvestingPro offers a wealth of additional tips. In fact, there are 13 more InvestingPro Tips available for subscribers, ranging from valuation implications to trading multiples. To access these insights, consider taking advantage of the special New Year sale on InvestingPro subscriptions, with discounts of up to 50%. Use coupon code "SFY24" for an extra 10% off a 2-year InvestingPro+ subscription, or "SFY241" for an extra 10% off a 1-year subscription, and gain comprehensive insights that could guide your investment decisions.
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