Virax Biolabs Group Limited Announces Closing of Exercise of Preferred Investment Options for $3.3 Million Gross Proceeds

Rhea-AI Summary

Virax Biolabs (Nasdaq: VRAX) closed the cash exercise of certain outstanding preferred investment options covering up to 548,000 ordinary shares at a reduced exercise price of $6.00 per share, versus the original $10.00, generating approximately $3.3 million in gross proceeds before fees.

In return for the immediate exercise, Virax Biolabs issued new unregistered Series A preferred investment options for up to 548,000 shares and short‑term Series B options for up to 1,096,000 shares, both exercisable at $6.00 per share, subject to an authorized share increase and registration of resale shares.

Positive

• $3.3 million gross proceeds from option exercises
• New Series A and B warrants covering 1,644,000 shares at $6.00
• Proceeds designated as working capital for general corporate purposes

Negative

• Exercise price reduced from $10.00 to $6.00 per share
• Potential dilution from up to 1,644,000 additional ordinary shares
• New warrants and underlying shares initially unregistered under the 1933 Act

News Market Reaction – VRAX

-0.25%

42 alerts

-0.25% Session close to close

-25.9% Trough in 12 hr 18 min

$2.53M Market Cap

0.5x Rel. Volume

In the Jul 13 session, VRAX declined 0.25%, reflecting a mild negative market reaction. Argus tracked a trough of -25.9% from its starting point during tracking. Our momentum scanner triggered 42 alerts that day, indicating elevated trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The closing of the warrant exercise brings in about $3.3M of gross proceeds but adds sizeable new Se...

Analysis

The closing of the warrant exercise brings in about $3.3M of gross proceeds but adds sizeable new Series A and B warrants. Investors may weigh improved liquidity against future dilution risk and the backdrop of frequent capital-raising activity.

Key Figures

Ordinary shares exercised: 548,000 shares Par value: $0.025 per share Original exercise price: $10.00 per share +5 more

8 metrics

Ordinary shares exercised 548,000 shares Preferred investment options exercised at reduced price

Par value $0.025 per share Ordinary Shares par value

Original exercise price $10.00 per share Preferred investment options originally issued in 2023 and 2025

Reduced exercise price $6.00 per share Current exercise of preferred investment options and New Warrants

Gross proceeds $3.3 million Gross proceeds from exercise of preferred investment options

Series B warrant coverage 1,096,000 shares Ordinary Shares underlying Series B Preferred Investment Options

Series A warrant term five years Expiry after later of Effective Date and Authorized Share Increase

Series B warrant term eighteen months Expiry after later of Effective Date and Authorized Share Increase

Historical Context

5 past events · Latest: Jul 09 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 09	Warrant exercise financing	Neutral	+100.0%	Announced reduced‑price exercise of preferred investment options for $3.3M gross proceeds.
Jul 09	Supply agreement	Positive	+100.0%	Signed exclusive multi‑country ImmuneSelect supply deal with Fosun Diagnostics.
Jun 24	Share consolidation	Neutral	-14.8%	Approved 1‑for‑25 share consolidation to regain Nasdaq minimum bid compliance.
May 26	Clinical data update	Positive	-18.2%	Reported positive early ViraxImmune data with strong specificity and PPV in PAIS.
Apr 14	Strategy update	Neutral	-11.1%	Shareholder letter outlining ViraxImmune strategy and expected cash versus market cap.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent financings, corporate actions and clinical updates have coincided with sharp, often double‑digit price swings following Virax headlines.

Key Terms

preferred investment options, form f-3, placement agent, private placement, +1 more

5 terms

preferred investment options financial

"closed its previously announced exercise of certain outstanding preferred investment options"

Preferred investment options are choices that typically offer a safer and more stable way to grow or protect your money, often providing consistent returns or income. They matter to investors because they can help balance risk and reward, serving as a reliable foundation in an investment portfolio—similar to choosing a well-established route over a risky shortcut.

form f-3 regulatory

"registered pursuant to effective registration statements on Form F-3"

Form F-3 is a U.S. securities filing that lets eligible foreign companies pre-register and then quickly sell shares or other securities to raise money, because they already meet ongoing reporting and size tests. For investors it signals that the company is up-to-date with regulatory disclosure and has an efficient way to issue new securities — similar to a pre-approved credit line — which can mean faster capital raises but also potential dilution of existing holdings.

placement agent financial

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

A placement agent is a professional or firm that helps organizations raise money from investors, such as individuals, institutions, or funds. They act like matchmakers, connecting those seeking investments with the right investors and guiding the process to ensure successful funding. For investors, they can provide access to exclusive opportunities and help navigate complex fundraising efforts.

private placement financial

"offered in a private placement pursuant to an applicable exemption"

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

registration statement regulatory

"agreed to file a registration statement with the SEC covering the resale"

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LONDON, July 10, 2026 /PRNewswire/ -- Virax Biolabs Group Limited ("Virax" or the "Company") (Nasdaq: VRAX) today closed its previously announced exercise of certain outstanding preferred investment options to purchase up to an aggregate of 548,000 ordinary shares of the Company, par value $0.025 (the "Ordinary Shares") originally issued in October 2023 (as amended in December 2025) and in December 2025 having an original exercise price of $10.00 per share, at a reduced exercise price of $6.00 per share. The resale of the Ordinary Shares issuable upon exercise of the warrants are registered pursuant to effective registration statements on Form F-3 (Nos. 333-292241 and 333-275893). The gross proceeds to the Company from the exercise of the preferred investment options were approximately $3.3 million, prior to deducting placement agent fees and estimated offering expenses.

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

In consideration for the immediate exercise of the preferred investment options for cash, the Company issued new unregistered Series A Ordinary Share Preferred Investment Options (the "Series A Preferred Investment Option") to purchase up to an aggregate of 548,000 Ordinary Shares and new short-term unregistered Series B Ordinary Share Preferred Investment Options (the "Series B Preferred Investment Option," together with the Series A Preferred Investment Option, the "New Warrants") to purchase up to an aggregate of 1,096,000 Ordinary Shares. The New Warrants have an exercise price of $6.00 per Ordinary Share. The Series A Preferred Investment Options are exercisable on or after the date of the approval by the shareholders of the Company of the increase in authorized Ordinary Shares of the Company (the "Authorized Share Increase") and expire five years following the later of the effective date of the resale registration statement registering the Ordinary Shares issuable upon exercise of the New Warrants (the "Effective Date") and the Authorized Share Increase, and the short-term Series B Preferred Investment Options are exercisable on or after the date of the Authorized Share Increase and expire eighteen months following the later of the Effective Date and the Authorized Share Increase.

The Company intends to use the net proceeds from the offering as working capital for general corporate purposes.

The New Warrants described above were offered in a private placement pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended (the "1933 Act") and, along with the Ordinary Shares issuable upon their exercise, have not been registered under the 1933 Act, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission ("SEC") or an applicable exemption from such registration requirements. The Company has agreed to file a registration statement with the SEC covering the resale of the Ordinary Shares issuable upon exercise of the New Warrants.

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

About Virax Biolabs Group Limited

Virax Biolabs Group Limited is a biotechnology company focused on immune response detection and T cell immune profiling. The Company is developing in vitro diagnostic technologies for viral and immune-mediated diseases, with an initial strategic focus on post-acute infection syndromes, including Long COVID, and related areas of chronic immune dysfunction. Its principal programs are ViraxImmune™, an in-development T cell-based immune profiling and diagnostic platform, and ImmuneSelect, a research-use-only portfolio of peptide pools, ELISpot plates and related immune reagents.

For more information, please visit www.viraxbiolabs.com

Safe Harbor Statement

This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: use of proceeds from the offering; the receipt of shareholder approval of the Authorized Share Increase; our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. These forward-looking statements are based on information currently available to Virax and its current plans or expectations and are subject to a number of known and unknown uncertainties, risks and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These and other important factors are described in detail in the "Risk Factors" section of Virax's Annual Report on Form 20-F for the year ended March 31, 2026. Although we believe the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

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SOURCE Virax BioLabs Group Limited

FAQ

What did Virax Biolabs (NASDAQ: VRAX) announce on July 10, 2026?

Virax Biolabs announced the closing of cash exercises of certain preferred investment options, raising about $3.3 million in gross proceeds. According to Virax Biolabs, it simultaneously issued new Series A and Series B preferred investment options for up to 1,644,000 ordinary shares at $6.00 per share.

How much capital did Virax Biolabs (VRAX) raise from the preferred investment option exercises?

Virax Biolabs raised approximately $3.3 million in gross proceeds from the exercise of preferred investment options at $6.00 per share. According to Virax Biolabs, this amount is before deducting placement agent fees and estimated offering expenses, with H.C. Wainwright & Co. acting as exclusive placement agent.

What are the terms of Virax Biolabs’ new Series A and Series B preferred investment options?

The new Series A and Series B preferred investment options each have an exercise price of $6.00 per ordinary share. According to Virax Biolabs, Series A covers up to 548,000 shares and expires five years after certain approvals, while Series B covers 1,096,000 shares and expires after eighteen months.

When can the new Virax Biolabs (VRAX) Series A and B warrants be exercised?

The new Series A and B warrants become exercisable after shareholders approve an increase in authorized ordinary shares. According to Virax Biolabs, their expiration dates are measured from the later of that approval and the effective date of a resale registration statement for the underlying shares.

Will the new Virax Biolabs preferred investment options dilute existing VRAX shareholders?

If fully exercised, the new Series A and B preferred investment options could add up to 1,644,000 ordinary shares. According to Virax Biolabs, these unregistered warrants were issued as consideration for the immediate cash exercise of existing options at the reduced $6.00 exercise price.

How does Virax Biolabs plan to use the $3.3 million in proceeds from the option exercises?

Virax Biolabs plans to use the net proceeds from the option exercises as working capital for general corporate purposes. According to Virax Biolabs, the $3.3 million figure is before subtracting placement agent fees and estimated offering-related expenses associated with the transaction.

Are the new Virax Biolabs (VRAX) warrants and underlying shares registered with the SEC?

The new Series A and B warrants and their underlying shares are initially unregistered under the 1933 Act. According to Virax Biolabs, they were issued via private placement, and the company has agreed to file a registration statement covering the resale of the underlying ordinary shares.