ROCHESTER, NY – Vaccinex (NASDAQ:VCNX), Inc., a biotechnology company specializing in pharmaceutical preparations, has entered into a securities purchase agreement resulting in a private placement that secured approximately $2.15 million in funding. The transaction, which involved both shares and pre-funded warrants, closed on Thursday.
The agreement, dated November 13, 2024, involved the sale of 76,909 shares of common stock at $3.25 per share and pre-funded warrants to purchase up to 584,646 shares at $3.2499 each.
The pre-funded warrants, which can be exercised at an initial price of $0.0001 per share, are immediately exercisable and do not expire until fully exercised, subject to a beneficial ownership limitation of 39.99%.
Significant investors in this round include FCMI Parent Co., led by Albert D. Friedberg, chair of Vaccinex's Board of Directors, and Vaccinex (Rochester), L.L.C., controlled by Maurice Zauderer, Ph.D., the company's president, CEO, and board member.
The agreement also provides investors with participation rights in the company's next financing round, which is expected to occur within six months and may include the sale of common stock and warrants. These rights will allow investors to purchase additional warrants at $0.125 each, under similar terms as the subsequent offering.
Additionally, the investors were granted customary resale registration rights for the shares and the shares underlying the pre-funded warrants. The sale was conducted as a private placement under Section 4(a)(2) of the Securities Act of 1933 and/or Rule 506 of Regulation D, and the securities were sold without registration under the Securities Act.
This move by Vaccinex, Inc., headquartered at 1895 Mount Hope Avenue in Rochester, New York, represents a strategic step to raise capital from accredited investors. The company's common stock is listed on the Nasdaq Capital Market under the ticker symbol VCNX.
The details of the pre-funded warrants and the securities purchase agreement are outlined in the exhibits attached to the SEC filing, which serves as the source for this information.
In other recent news, Vaccinex has signed multiple project agreements with pharmaceutical companies like Amgen (NASDAQ:AMGN), Merck (NS:PROR), and Incyte (NASDAQ:INCY), leveraging its ActivMAb technology for antibody discovery. These partnerships aim to advance the development of antibody-based immunotherapies. Financial details of these agreements remain undisclosed.
In addition, Vaccinex has reported progress in its SIGNAL-AD Phase 1b/2 clinical trial, indicating that its lead product, pepinemab, may slow the progression of Alzheimer's disease. The company also secured approximately $6.2 million in funding through agreements for the exercise of existing warrants at a reduced price and the issuance of new warrants.
Despite facing potential delisting from the Nasdaq Capital Market due to an equity shortfall, Vaccinex plans to appeal the decision to a Nasdaq Hearings Panel. These are some of the recent developments in Vaccinex's pursuit of Alzheimer's disease treatment.
InvestingPro Insights
Vaccinex's recent private placement of $2.15 million comes at a critical time for the company, as reflected in recent financial data and analyst projections. According to InvestingPro data, Vaccinex's market capitalization stands at a modest $10.12 million, highlighting the significance of this capital raise relative to the company's size.
InvestingPro Tips suggest that while Vaccinex is "quickly burning through cash" and "not profitable over the last twelve months," analysts anticipate sales growth and expect the company to become profitable this year. This optimism aligns with the company's efforts to secure additional funding through the private placement.
The company's financial health presents a mixed picture. With a revenue of $0.36 million in the last twelve months and a substantial negative gross profit margin, Vaccinex faces significant challenges. However, the strong return of 58.99% over the last month, as reported by InvestingPro, indicates renewed investor interest, possibly influenced by the recent funding news.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Vaccinex, providing a deeper understanding of the company's financial position and market performance.
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