Novavax closes $18M financing

US firm Novavax has completed the previously-announced registered direct equity financing of $18.0 million by issuing common stock and warrants from its existing shelf registration statement. The company sold 6,686,650 units to certain current and new institutional shareholders and certain affiliates. Each unit was comprised of one share of common stock and a warrant to purchase 0.5 shares of common stock and was sold at a purchase price of $2.68 per unit (or $2.8425 per unit for units sold to affiliates of the company).

The warrants, which represent the right to acquire 3,343,325 shares of common stock, will be exercisable at a price of $3.62 per share and have a five-year term. Novavax completed the financing without using the services of a placement agent or underwriter.

Net proceeds of the offering after expenses are expected to be $17.6 million and the company intends to use these for preclinical and clinical studies for its VLPNeuto-based vaccines, internal research and development programs, working capital, capital expenditures and other general corporate purposes.