VaxGen to raise $27M through stock sale

California, USA-based VaxGen says it expects to raise gross proceeds of $26.95 million through the sale of 3.5 million shares in a private placement of unregistered securities to a group of accredited investors.

The company will also issue the investors with five-year warrants initially exercisable to buy around 700,000 shares at an exercise price of $9.24 each.

Including the estimated net proceeds from this transaction and excluding any that may be realized from the warranted, VaxGen estimates its cash, equivalents and investments will total about $35.0 million.