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Evaxion Announces Closing of $15 Million Public Offering

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Evaxion Biotech A/S (EVAX) closed a public offering of 3,750,000 of its American Depositary Shares (ADSs) and warrants, raising $15 million. MSD Global Health Innovation Fund, a shareholder since December 2023, participated in the offering. The net proceeds will be used to advance the preclinical and clinical pipeline and for operating expenses and working capital.
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The recent public offering by Evaxion Biotech represents a significant capital infusion for the company, amounting to $15 million in gross proceeds. This financial move is particularly noteworthy given the participation of MSD Global Health Innovation Fund, indicating a vote of confidence from a subsidiary of a major pharmaceutical entity, Merck & Co. The immediate exercisability of the warrants at an exercise price equal to the offering price suggests a strategic pricing decision aimed at incentivizing investment without diluting current shareholder value excessively.

From a financial perspective, the allocation of net proceeds towards advancing preclinical and clinical pipelines could potentially accelerate the development of Evaxion's AI-Immunology™ powered vaccines. This is a critical juncture for investors to monitor, as advancements in this area could lead to significant value creation. However, investors should also be mindful of the inherent risks associated with clinical-stage biotech investments, where the path to profitability is often uncertain and contingent on successful trial outcomes and regulatory approvals.

Evaxion's focus on AI-Immunology™ for vaccine development is at the forefront of biotechnological innovation. The use of artificial intelligence in immunology has the potential to significantly reduce the time and cost associated with vaccine development by predicting immune responses and identifying viable antigens more efficiently than traditional methods. The capital raised from this offering is likely to fuel further research and development in this cutting-edge field, which could have profound implications for the future of vaccine development and personalized medicine.

However, the success of such technology-driven approaches depends on the robustness of the AI algorithms and the quality of the underlying biological data. Stakeholders should consider the company's track record in advancing its pipeline products and the competitive landscape of AI-driven biotech firms. Breakthroughs in this area could lead to substantial market opportunities, but the field is highly competitive and fast-moving, requiring continuous innovation and investment.

The biotech sector has always been a high-stakes area of the stock market, with investor sentiment often swayed by the progress of clinical trials and regulatory news. Evaxion's recent public offering and its implications for the company's product pipeline must be contextualized within the broader industry trends of increasing reliance on AI and machine learning in drug discovery and development. The involvement of H.C. Wainwright & Co. as the exclusive placement agent also underscores the specialized nature of biotech financing, where firms with expertise in the sector play a pivotal role in connecting innovative companies with investors.

It is essential for stakeholders to assess the long-term viability of Evaxion's AI-Immunology™ platform within the competitive landscape. The company's strategic decision to focus on preclinical and clinical development, as well as securing operational funding, suggests a commitment to achieving key milestones that could enhance investor confidence. However, the market will be watching closely for material developments that confirm the efficacy and commercial potential of their vaccine candidates, which will ultimately drive the stock's performance.

COPENHAGEN, Denmark, Feb. 06, 2024 (GLOBE NEWSWIRE) -- Evaxion Biotech A/S (NASDAQ: EVAX) (“Evaxion” or the “Company”), a clinical-stage TechBio company specializing in developing AI-Immunology™ powered vaccines, today announced the closing on February 5, 2024 of its previously announced public offering of 3,750,000 of its American Depositary Shares (“ADSs”) (or pre-funded warrants in lieu thereof) and warrants to purchase up to 3,750,000 ADSs at a combined public offering price of $4.00 per ADS (or pre-funded warrant in lieu thereof) and accompanying warrant. MSD Global Health Innovation Fund (MSD GHI), a corporate venture capital arm of Merck & Co., Inc., Rahway, NJ, USA, who became an Evaxion shareholder in December 2023, participated in this offering. The warrants have an exercise price of $4.00 per ADS, are exercisable immediately upon issuance and will expire five years following the date of issuance. Each ADS represents ten ordinary shares of the Company.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

The gross proceeds to the Company from the offering were $15 million before deducting the placement agent's fees and other offering expenses payable by the Company. The Company intends to use the net proceeds of this offering to advance the Company’s preclinical and clinical pipeline and for continuing operating expenses and working capital.

A registration statement on Form F-1 (File No. 333-276505) relating to the securities described above has been filed with the Securities and Exchange Commission, or the SEC, and was declared effective by the SEC on February 1, 2024. The offering was made only by means of a prospectus, which is part of the effective registration statement. A final prospectus relating to the offering has been filed with the SEC.  Electronic copies of the final prospectus may be obtained for free on the SEC's website located at http://www.sec.gov and may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Evaxion

Evaxion Biotech A/S is a pioneering TechBio company based upon its AI platform, AI-Immunology™. Evaxion’s proprietary and scalable AI prediction models harness the power of artificial intelligence to decode the human immune system and develop novel immunotherapies for cancer, bacterial diseases, and viral infections. Based upon AI-Immunology™, Evaxion has developed a clinical-stage oncology pipeline of novel personalized vaccines and a preclinical infectious disease pipeline in bacterial and viral diseases with high unmet medical needs. Evaxion is committed to transforming patients’ lives by providing innovative and targeted treatment options. For more information about Evaxion and its groundbreaking AI-Immunology™ platform and vaccine pipeline, please visit our website.

Forward-Looking Statement

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “target,” “believe,” “expect,” “hope,” “aim,” “intend,” “may,” “might,” “anticipate,” “contemplate,” “continue,” “estimate,” “plan,” “potential,” “predict,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could,” and other words and terms of similar meaning identify forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors, including, but not limited to, risks related to: statements regarding the use of net proceeds from the offering; our financial condition and need for additional capital; our development work; cost and success of our product development activities and preclinical and clinical trials; commercializing any approved pharmaceutical product developed using our AI platform technology, including the rate and degree of market acceptance of our product candidates; our dependence on third parties including for conduct of clinical testing and product manufacture; our inability to enter into partnerships; government regulation; protection of our intellectual property rights; employee matters and managing growth; our ADSs and ordinary shares, the impact of international economic, political, legal, compliance, social and business factors, including inflation, and the effects on our business from the worldwide ongoing COVID-19 pandemic and the ongoing conflict in the region surrounding Ukraine and Russia and the Middle East; market and other conditions and other uncertainties affecting our business operations and financial condition. For a further discussion of these risks, please refer to the section entitled “Risk Factors” contained in the final prospectus and our other filings with the U.S. Securities and Exchange Commission (SEC), which are available at www.sec.gov. We do not assume any obligation to update any forward-looking statements except as required by law. 

Source: Evaxion Biotech 


The public offering size was 3,750,000 of its American Depositary Shares (ADSs) and warrants.

The company raised $15 million in the public offering.

MSD Global Health Innovation Fund, a shareholder since December 2023, participated in the offering.

The net proceeds will be used to advance the preclinical and clinical pipeline and for operating expenses and working capital.
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About EVAX

since 2008, evaxion biotech has been pioneering discovery of antigens and neo-epitopes for vaccines and antibodies using artificial intelligence, with the mission to solve some of the world’s most significant challenges to human health. evaxion has constructed a robust product engine for the development of novel vaccines and therapies based on our two platforms, pioneer and eden. using state of the art in silico tools, the platforms integrate big data, artificial intelligence and supercomputing to predict, rank and optimize epitopes and antigens that elicit a highly protective immune response against cancers and infectious diseases. eden enables rapid and accurate discovery of novel antigens that elicit a highly cross-protective immune response in any bacterial pathogen while pioneer has been constructed to identify the epitopes of mutated proteins that will fire up the body’s natural immune responses to them. to learn more about evaxion, please visit http://www.evaxion-biotech.ai