Vaxart Addresses Frequently Asked Questions on Reverse Stock Split Proposal in Definitive Proxy Statement
Vaxart (VXRT) is addressing stockholder questions regarding a proposed reverse stock split ahead of its Annual Meeting on May 21, 2025. The company is seeking stockholder approval to implement a reverse split ratio between 1-for-5 and 1-for-50 to regain Nasdaq compliance, as its current share price of $0.42 (as of May 9, 2025) falls below the required $1.00 minimum bid price.
The company emphasizes that the reverse split won't change stockholders' investment value or cause dilution, but will result in fewer shares at a higher price. Both leading proxy advisory firms, ISS and Glass Lewis, support the proposal. Management stresses that maintaining Nasdaq listing is crucial for market visibility, trading volume, and future financing opportunities to advance their clinical programs for COVID-19 and norovirus.
The board intends to select a ratio just high enough to resolve the Nasdaq deficiency, with no current plans to implement the maximum 1:50 ratio.Vaxart (VXRT) risponde alle domande degli azionisti riguardo a una proposta di frazionamento inverso delle azioni in vista dell'Assemblea Annuale del 21 maggio 2025. L'azienda cerca l'approvazione degli azionisti per attuare un frazionamento inverso con un rapporto compreso tra 1-per-5 e 1-per-50 per ristabilire la conformità al Nasdaq, dato che il prezzo attuale delle azioni di 0,42$ (al 9 maggio 2025) è inferiore al prezzo minimo richiesto di 1,00$ per azione.
L'azienda sottolinea che il frazionamento inverso non modificherà il valore dell'investimento degli azionisti né causerà diluizione, ma comporterà un numero inferiore di azioni a un prezzo più elevato. Entrambe le principali società di consulenza per deleghe, ISS e Glass Lewis, supportano la proposta. La direzione evidenzia che mantenere la quotazione al Nasdaq è fondamentale per la visibilità sul mercato, il volume degli scambi e le future opportunità di finanziamento per avanzare i programmi clinici contro COVID-19 e norovirus.
Il consiglio intende scegliere un rapporto sufficientemente alto per risolvere la non conformità al Nasdaq, senza attualmente prevedere di adottare il massimo rapporto 1:50.
Vaxart (VXRT) está respondiendo a las preguntas de los accionistas sobre una propuesta de división inversa de acciones antes de su Junta Anual el 21 de mayo de 2025. La compañía busca la aprobación de los accionistas para implementar una división inversa con una proporción entre 1 por 5 y 1 por 50 para recuperar la conformidad con Nasdaq, ya que el precio actual de la acción de $0.42 (al 9 de mayo de 2025) está por debajo del precio mínimo requerido de $1.00 por acción.
La empresa enfatiza que la división inversa no cambiará el valor de la inversión de los accionistas ni causará dilución, sino que resultará en menos acciones a un precio más alto. Ambas principales firmas de asesoría de voto, ISS y Glass Lewis, apoyan la propuesta. La dirección destaca que mantener la cotización en Nasdaq es crucial para la visibilidad en el mercado, el volumen de negociación y las futuras oportunidades de financiamiento para avanzar en sus programas clínicos para COVID-19 y norovirus.
La junta tiene la intención de seleccionar una proporción lo suficientemente alta para resolver la deficiencia en Nasdaq, sin planes actuales de implementar la proporción máxima de 1:50.
Vaxart (VXRT)는 2025년 5월 21일 연례 주주총회를 앞두고 제안된 역주식병합에 관한 주주들의 질문에 답변하고 있습니다. 회사는 현재 주가가 2025년 5월 9일 기준 0.42달러로 최소 입찰가 1.00달러 미만이기 때문에 나스닥 규정 준수를 회복하기 위해 1대 5에서 1대 50 사이의 역병합 비율을 주주 승인받고자 합니다.
회사는 역주식병합이 주주들의 투자 가치를 변경하거나 희석을 초래하지 않으며, 단지 주식 수는 줄고 주가는 상승할 것임을 강조합니다. 주요 의결권 자문사인 ISS와 Glass Lewis 모두 이 제안을 지지합니다. 경영진은 나스닥 상장 유지가 시장 가시성, 거래량, 그리고 COVID-19 및 노로바이러스 임상 프로그램을 진전시키기 위한 향후 자금 조달 기회에 매우 중요하다고 강조합니다.
이사회는 나스닥 미준수 문제를 해결할 만큼 충분히 높은 비율을 선택할 계획이며, 현재 최대 1:50 비율을 시행할 계획은 없습니다.
Vaxart (VXRT) répond aux questions des actionnaires concernant une proposition de regroupement d'actions avant son Assemblée Générale Annuelle du 21 mai 2025. La société cherche à obtenir l'approbation des actionnaires pour mettre en œuvre un regroupement d'actions avec un ratio compris entre 1 pour 5 et 1 pour 50 afin de retrouver la conformité au Nasdaq, car le cours actuel de l'action, à 0,42 $ au 9 mai 2025, est inférieur au prix minimum requis de 1,00 $.
La société souligne que ce regroupement n'affectera pas la valeur de l'investissement des actionnaires ni ne provoquera de dilution, mais entraînera une réduction du nombre d'actions à un prix plus élevé. Les deux principales sociétés de conseil en vote, ISS et Glass Lewis, soutiennent la proposition. La direction insiste sur le fait que le maintien de la cotation au Nasdaq est crucial pour la visibilité sur le marché, le volume des échanges et les futures opportunités de financement afin de faire progresser leurs programmes cliniques contre la COVID-19 et le norovirus.
Le conseil d'administration a l'intention de choisir un ratio juste assez élevé pour résoudre le manquement au Nasdaq, sans plans actuels pour appliquer le ratio maximal de 1:50.
Vaxart (VXRT) beantwortet Aktionärsfragen bezüglich eines vorgeschlagenen Reverse Stock Splits vor der Hauptversammlung am 21. Mai 2025. Das Unternehmen strebt die Zustimmung der Aktionäre an, um einen Reverse Split im Verhältnis zwischen 1:5 und 1:50 durchzuführen, um die Nasdaq-Konformität wiederherzustellen, da der aktuelle Aktienkurs von 0,42 USD (Stand 9. Mai 2025) unter dem erforderlichen Mindestgebotspreis von 1,00 USD liegt.
Das Unternehmen betont, dass der Reverse Split den Wert der Investition der Aktionäre nicht verändert oder zu einer Verwässerung führt, sondern lediglich zu weniger Aktien zu einem höheren Preis führt. Beide führenden Stimmrechtsberatungsfirmen, ISS und Glass Lewis, unterstützen den Vorschlag. Das Management hebt hervor, dass die Aufrechterhaltung der Nasdaq-Notierung entscheidend für die Marktpräsenz, das Handelsvolumen und zukünftige Finanzierungsmöglichkeiten zur Weiterentwicklung der klinischen Programme für COVID-19 und Norovirus ist.
Der Vorstand beabsichtigt, ein ausreichend hohes Verhältnis zu wählen, um das Nasdaq-Defizit zu beheben, ohne derzeit den maximalen 1:50-Split umzusetzen.
- Support from leading proxy advisory firms ISS and Glass Lewis for the reverse split proposal
- Company has received non-dilutive funding from BARDA and Gates Foundation
- Maintaining Nasdaq listing would help preserve market visibility and facilitate future financing opportunities
- Board flexibility to not implement the split if stock price naturally rises above $1.00
- Risk of Nasdaq delisting due to share price below $1.00 requirement
- Current share price at $0.42, significantly below compliance threshold
- Company is not currently profitable
- Limited options for increasing share price without reverse split
Insights
Vaxart's reverse split proposal is crucial to maintain Nasdaq listing, but doesn't change fundamental value or ownership percentages.
Vaxart faces a critical compliance issue with its $0.42 share price falling well below Nasdaq's $1.00 minimum requirement. The proposed reverse split (ranging from 1-for-5 to 1-for-50) is essentially a mathematical adjustment - reducing share count while proportionally increasing share price without changing overall market capitalization or investor ownership percentages.
The board has indicated they'll choose the minimum ratio necessary to achieve compliance, with no intention of implementing the maximum 1:50 ratio. This is strictly a compliance maneuver, not a reflection of business fundamentals or operational changes.
Maintaining Nasdaq listing provides crucial benefits: enhanced visibility, institutional investor access, analyst coverage, and better capital raising potential. These are particularly important for Vaxart as a pre-profitable clinical-stage biotech company needing ongoing access to capital markets.
The alternative - OTC market relegation - would significantly reduce liquidity, eliminate institutional investor participation (many of whom have mandates prohibiting OTC investments), and likely reduce analyst coverage. This could create a negative feedback loop of reduced visibility leading to further share price deterioration.
The split proposal has secured endorsements from both major proxy advisory firms (ISS and Glass Lewis), highlighting the necessity of this action. While management acknowledges this isn't their preferred option, it represents a pragmatic step to preserve market position while they continue advancing their COVID-19 and norovirus clinical programs.
Company Urges Stockholders to Vote FOR Reverse Stock Split Proposal at Upcoming Annual Meeting to Avoid Nasdaq Delisting
SOUTH SAN FRANCISCO, Calif., May 12, 2025 (GLOBE NEWSWIRE) -- Vaxart, Inc. (Nasdaq: VXRT) today addresses frequently asked stockholder questions regarding a reverse stock split proposal at the Company’s Annual Meeting taking place on Wednesday, May 21, 2025, to regain Nasdaq compliance.
1) Why is Vaxart proposing a reverse stock split?
a. Vaxart is at risk of being delisted from Nasdaq since the Company’s share price is not in compliance with their minimum
2) Will the Reverse Stock Split change the value of my investment?
a. No. The reverse stock split does not impact the aggregate value of a stockholder’s investment or percentage ownership interest in the Company, except with respect to the treatment of fractional shares. Stockholders will own fewer shares at an anticipated higher price per share.
3) Will the Reverse Stock Split cause dilution in Vaxart’s stock?
a. No. The reverse split only causes a change for all issued shares of Vaxart’s common stock uniformly.
4) Why is the proposed Reverse Stock Split ratio of not less than 1-for-5 and not more than 1-for-50 so wide?
a. Since the closing per share stock price was
5) Can Vaxart institute a share repurchase program instead?
a. Since we are not currently a profitable company, we believe that instituting a share repurchase program would not be a prudent use of capital at this time. Funds from the Project NextGen award are directly used only for costs related to our Phase 2b COVID-19 clinical trial.
6) Can the Company continue trading on Nasdaq without executing a reverse stock split?
a. It is unlikely that the Company will continue trading on Nasdaq without a reverse stock split unless there is a sudden change in the stock price above
7) What are the anticipated benefits of the reverse stock split for Vaxart and its stockholders?
a. There are many benefits of the reverse stock split: 1) It is anticipated to maintain our Nasdaq listing, which is the primary driver behind the proposed reverse stock split; 2) It potentially increases our market visibility that may broaden our investor appeal; and 3) It potentially enhances our long-term value since the result will likely increase trading volume and facilitate future financing opportunities, which are critical to advancing our important work.
8) Have any independent proxy advisory firms weighed in on the reverse stock split proposal?
a. Yes. In addition to Vaxart’s board of directors unanimously recommending stockholders vote “FOR” the reverse stock split proposal, both of the leading independent proxy advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis, recommend Vaxart’s stockholders support this important proposal. In making their recommendations, ISS and Glass Lewis cite the current risk of Vaxart being delisted from Nasdaq.
9) Are there other options to increase the share price?
a. Yes. We continue to pursue numerous options to enhance stockholder value, but currently a reverse stock split is often the most direct and immediate way to address low share price issues and meet listing requirements. Organic price appreciation depends on, among other things, positive clinical trial results, regulatory progress, and market sentiment, which can be less predictable and take more time. A reverse stock split provides us with a necessary foundation to attract a wider investor base and potentially benefit from future positive developments.
10) Will the reverse stock split change the fundamental value of Vaxart?
a. No. A reverse stock split is a numerical adjustment to the number of outstanding shares and, consequently, the price per share. It does not inherently change the underlying business operations, assets, or potential of Vaxart. For example, if you own 100 shares at
11) Would Vaxart be better off trading on the OTC?
a. No. If our common stock is delisted from Nasdaq, this could adversely affect the value of the securities that you hold and our trading volume, making it more difficult to buy and sell our securities. Trading on the OTC means significantly lower visibility, limiting our access to the larger pool of capital available on major exchanges. Crucially, many institutional investors have mandates that restrict or outright prohibit them from investing in OTC-listed companies due to the perceived higher risk, lower liquidity, and less stringent regulatory requirements. Furthermore, we anticipate that a delisting could lead to a cessation of research coverage by financial analysts. This lack of research coverage would reduce market visibility and potentially negatively impact investor sentiment and understanding of our value proposition.
12) How does the reverse stock split fit into the Company's overall strategy?
a. A reverse stock split is not an option that Vaxart prefers; however, we believe it is in the best interest of the Company and stockholders to maintain our Nasdaq listing. Maintaining our listing on Nasdaq listing is essential in supporting the Company's overall strategy of progressing its clinical stage programs for COVID-19 and norovirus while continuing to advance its promising preclinical pipeline.
13) Does management stand to benefit from stockholders approving the reverse stock split?
a. No. Management equity is adjusted accordingly. In fact, management has also suffered losses related to the Company’s share price decline.
14) Will Vaxart pursue non-dilutive funding or partnership options?
a. Vaxart has already obtained significant non-dilutive funding in the form of its BARDA award as well as a smaller award from the Gates Foundation. Vaxart will continue to explore both business development partnerships and non-dilutive funding options. While the Company has held many productive meetings to date, more time and/or more data is needed to advance these discussions further.
15) Can I change my vote after submitting my proxy?
a. Stockholders may change their vote at any time prior to the meeting. Your latest proxy card or other proxy is the one that is counted. If your shares are held by your broker or bank as a nominee or agent, you should follow the instructions provided by your broker or bank. Refer to the proxy statement for the annual meeting for additional details.
If you have any questions or need assistance with voting, please contact Vaxart’s proxy solicitation firm:
Campaign Management, LLC
Toll-Free: 1-855-264-1527
Email: info@campaign-mgmt.com
About Vaxart
Vaxart is a clinical-stage biotechnology company developing a range of oral recombinant vaccines based on its proprietary delivery platform. Vaxart vaccines are designed to be administered using pills that can be stored and shipped without refrigeration and eliminate the risk of needle-stick injury. Vaxart believes that its proprietary pill vaccine delivery platform is suitable to deliver recombinant vaccines, positioning the company to develop oral versions of currently marketed vaccines and to design recombinant vaccines for new indications. Vaxart’s development programs currently include pill vaccines designed to protect against coronavirus, norovirus and influenza, as well as a therapeutic vaccine for human papillomavirus (HPV), Vaxart’s first immune-oncology indication. Vaxart has filed broad domestic and international patent applications covering its proprietary technology and creations for oral vaccination using adenovirus and TLR3 agonists.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections, concerning our business, operations, and financial performance and condition as well as our plans, objectives, and expectations for business operations, funding, financial performance and condition, and regaining compliance with the Nasdaq minimum bid price requirement. Any statements contained herein that are not of historical facts may be deemed to be forward-looking statements. You can identify these statements by words such as “anticipate,” “assume,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “should,” “will,” “would,” and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements are based on current expectations, estimates, forecasts, and projections about our business and the industry in which we operate and management’s beliefs and assumptions and are not guarantees of future performance or development and involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking statements in this press release may turn out to be inaccurate. Factors that could materially affect our business operations and financial performance and condition include, but are not limited to, those risks and uncertainties described under “Item 1A - Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 and any risk factors disclosed in any subsequent Quarterly Reports on Form 10-Q. You are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. The forward-looking statements are based on information available to us as of the date of this press release. Unless required by law, we do not intend to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise. You should, however, review the factors and risks we describe in the reports we will file from time to time with the SEC after the date of this press release.
Participants in the Solicitation
The Company and its directors, executive officers, and certain employees and other persons may be deemed to be participants in the solicitation of proxies from the Company's stockholders in connection with the business to be conducted at the annual meeting of stockholders. Investors and security holders may obtain more detailed information regarding the names, affiliations, and interests of the Company's directors and executive officers in the definitive proxy statement filed in connection with the annual meeting of stockholders as well as the Company’s other filings with the U.S. Securities and Exchange Commission (the “SEC”), all of which may be obtained free of charge at the website maintained by the SEC at www.sec.gov.
Contact
Vaxart Media and Investor Relations
Matt Steinberg
FINN Partners
IR@vaxart.com
(646) 871-8481
FAQ
Why is Vaxart (VXRT) proposing a reverse stock split in May 2025?
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