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news.Novavax has announced the pricing of a registered direct equity financing of $18 million by issuing common stock and warrants from its existing shelf registration.
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The company has entered into subscription agreements with certain current, new institutional shareholders and affiliates of the company to sell 6.68 million units which are comprised of one share of common stock and a warrant to purchase 0.5 shares of common stock at a price of $2.68 per unit (or $2.843 per unit for units sold to affiliates of the company).
The warrants, which represent the right to acquire 3.34 million shares of common stock will be exercisable at a price of $3.62 per share and have a five year term.
Net proceeds of the transaction are expected to be $17.6 million. The offering is expected to close on July 31, 2008, subject to customary closing conditions.
The company intends to use the net proceeds of the offering for pre-clinical and clinical studies for its VLP-based vaccines, internal research and development programs, working capital, capital expenditures and other general corporate purposes.