Evaxion finalizes agreement with EIB to convert debt into equity
Evaxion (NASDAQ: EVAX), a clinical-stage TechBio company focused on AI-powered vaccine development, has finalized a significant debt-to-equity conversion agreement with the European Investment Bank (EIB). Under the agreement, EIB will convert €3.5 million of its existing €7 million loan into equity through warrant purchases at $4.87 per share, representing an 89% premium to the previous day's closing price.
The strategic transaction immediately strengthens Evaxion's equity position by $4.1 million (€3.5 million), while significantly reducing the company's debt burden. This restructuring is expected to enhance Evaxion's financial flexibility and improve cash flow, marking a positive development in the company's financial management strategy.
Evaxion (NASDAQ: EVAX), un'azienda TechBio in fase clinica specializzata nello sviluppo di vaccini basati sull'intelligenza artificiale, ha finalizzato un importante accordo di conversione del debito in capitale con la Banca Europea per gli Investimenti (BEI). Secondo l'accordo, la BEI convertirà 3,5 milioni di euro dei suoi 7 milioni di euro di prestito esistenti in capitale tramite l'acquisto di warrant a 4,87 dollari per azione, con un premio dell'89% rispetto al prezzo di chiusura del giorno precedente.
Questa operazione strategica rafforza immediatamente la posizione azionaria di Evaxion di 4,1 milioni di dollari (3,5 milioni di euro), riducendo significativamente l'onere del debito della società. La ristrutturazione dovrebbe migliorare la flessibilità finanziaria di Evaxion e ottimizzare il flusso di cassa, rappresentando un importante passo avanti nella gestione finanziaria dell'azienda.
Evaxion (NASDAQ: EVAX), una empresa TechBio en etapa clínica enfocada en el desarrollo de vacunas impulsadas por IA, ha finalizado un importante acuerdo de conversión de deuda en capital con el Banco Europeo de Inversiones (BEI). Según el acuerdo, el BEI convertirá 3,5 millones de euros de su préstamo existente de 7 millones de euros en capital mediante la compra de warrants a 4,87 dólares por acción, representando una prima del 89% respecto al precio de cierre del día anterior.
Esta transacción estratégica fortalece inmediatamente la posición accionaria de Evaxion en 4,1 millones de dólares (3,5 millones de euros), reduciendo significativamente la carga de deuda de la compañía. Se espera que esta reestructuración mejore la flexibilidad financiera y el flujo de caja de Evaxion, marcando un avance positivo en la gestión financiera de la empresa.
Evaxion (NASDAQ: EVAX)은 AI 기반 백신 개발에 주력하는 임상 단계의 테크바이오 기업으로, 유럽 투자은행(EIB)과 중요한 부채를 주식으로 전환하는 계약을 마무리했습니다. 이 계약에 따라 EIB는 기존 700만 유로 대출 중 350만 유로를 주식으로 전환하며, 주당 4.87달러에 워런트를 매입합니다. 이는 전일 종가 대비 89% 프리미엄에 해당합니다.
이번 전략적 거래로 Evaxion의 자본금이 즉시 410만 달러(350만 유로) 증가하며, 회사의 부채 부담은 크게 줄어듭니다. 이번 구조조정은 Evaxion의 재무 유연성을 높이고 현금 흐름을 개선할 것으로 기대되며, 회사 재무 관리 전략에 긍정적인 발전을 의미합니다.
Evaxion (NASDAQ : EVAX), une entreprise TechBio en phase clinique spécialisée dans le développement de vaccins assistés par IA, a finalisé un accord important de conversion de dette en actions avec la Banque européenne d'investissement (BEI). Selon cet accord, la BEI convertira 3,5 millions d'euros de son prêt existant de 7 millions d'euros en actions via l'achat de bons de souscription à 4,87 dollars par action, représentant une prime de 89 % par rapport au cours de clôture de la veille.
Cette opération stratégique renforce immédiatement la position en capitaux propres d'Evaxion de 4,1 millions de dollars (3,5 millions d'euros), tout en réduisant considérablement la dette de l'entreprise. Cette restructuration devrait améliorer la flexibilité financière d'Evaxion et optimiser sa trésorerie, marquant une évolution positive dans la stratégie de gestion financière de la société.
Evaxion (NASDAQ: EVAX), ein klinisch tätiges TechBio-Unternehmen mit Schwerpunkt auf KI-gestützter Impfstoffentwicklung, hat eine bedeutende Umwandlungsvereinbarung von Schulden in Eigenkapital mit der Europäischen Investitionsbank (EIB) abgeschlossen. Gemäß der Vereinbarung wird die EIB 3,5 Millionen Euro ihres bestehenden 7 Millionen Euro Darlehens in Eigenkapital umwandeln, indem sie Bezugsrechte zum Preis von 4,87 USD pro Aktie erwirbt, was einem 89%igen Aufschlag auf den Schlusskurs des Vortags entspricht.
Diese strategische Transaktion stärkt sofort die Eigenkapitalposition von Evaxion um 4,1 Millionen USD (3,5 Millionen Euro) und reduziert gleichzeitig erheblich die Verschuldung des Unternehmens. Die Umstrukturierung wird voraussichtlich die finanzielle Flexibilität von Evaxion verbessern und den Cashflow steigern, was eine positive Entwicklung in der Finanzstrategie des Unternehmens darstellt.
- Immediate equity increase of $4.1 million (€3.5 million)
- Warrant purchase price represents an 89% premium to market price
- Reduction of debt liability by €3.5 million improves balance sheet
- Enhanced financial flexibility and improved cash flow
- Company still maintains €3.5 million in remaining EIB debt
Insights
Evaxion converts half its EIB debt to equity at 89% premium, strengthening balance sheet and improving cash flow position.
Evaxion has successfully negotiated a €3.5 million debt-to-equity conversion with the European Investment Bank (EIB), representing half of its outstanding €7 million loan. This transaction comes with remarkably favorable terms for Evaxion, as the EIB will purchase warrants at $4.87 per share—an
The immediate balance sheet impact is substantial. Evaxion's equity position strengthens by
- Lower debt service burden, improving operational cash flow
- Simplified capital structure with reduced leverage
- Enhanced financial flexibility for future operations
The premium pricing is particularly noteworthy, suggesting strong institutional confidence in Evaxion's long-term prospects despite current market valuation. For a clinical-stage biotech company, reducing cash burn through debt reduction represents prudent financial management, especially given the typically lengthy and capital-intensive drug development process.
While this transaction resolves half of Evaxion's EIB debt, investors should note that
- Evaxion and the European Investment Bank (EIB) have finalized a debt settlement agreement of
€3.5 million out of Evaxion’s€7 million loan with EIB, to be used for EIB to purchase€3.5 million worth of ordinary Evaxion warrants - EIB will purchase the warrants at a price of
$4.87 corresponding to a premium of89% to the share price by market close yesterday - The agreement immediately increases Evaxion’s equity by
$4.1 million (€3.5 million ) - Further, the agreement also substantially reduces Evaxion’s overall liabilities, simplifies its balance sheet and improves its financial flexibility and cash flow
COPENHAGEN, Denmark, July 11, 2025 - Evaxion A/S (NASDAQ: EVAX) (“Evaxion”), a clinical-stage TechBio company specializing in developing AI-Immunology™ powered vaccines, has finalized its agreement with the European Investment Bank (EIB) to convert debt into equity.
EIB will convert
“We are delighted to finalize the agreement with the EIB on favourable terms for Evaxion and our shareholders. I would like to thank the EIB for their support and very constructive approach in the negotiations. The agreement further simplifies our balance sheet and improves our cash flow, which is an important element in the financial management of the company,” says Thomas F. Schmidt, CFO of Evaxion.
Contact information
Evaxion A/S
Mads Kronborg
Vice President, Investor Relations & Communication
+45 53 54 82 96
mak@evaxion.ai
About Evaxion
Evaxion 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: 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 other significant geopolitical and macro-economic events; and other uncertainties affecting our business operations and financial condition. For a further discussion of these risks, please refer to the risk factors included in our most recent Annual Report on Form 20-F and other filings with the US 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.
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