Evaxion Biotech Secures Up to $40 Million in Equity Funding from Lincoln Park Capital
COPENHAGEN, Denmark, June 07, 2022 (GLOBE NEWSWIRE) — Evaxion Biotech A/S (NASDAQ: EVAX) (“Evaxion” or the “Company”), a clinical-stage biotechnology company specializing in the development of immunotherapies based on IA, today announced that it has entered into a committed share purchase agreement (the “Agreement”) with Lincoln Park Capital Fund, LLC (“LPC”), for the issuance and sale , from time to time, up to $40 million of its American Depositary Shares (the “ADS”), each representing one ordinary share, with a par value of DKK 1, of the Company (the “Ordinary Shares “).
Under the terms of the agreement, Evaxion has the right, in its sole discretion, but not the obligation, to sell to LPC up to $40 million of its ADS over the 36-month term of the agreement, subject to subject to certain conditions.
Lars Wegner, CEO of Evaxion, said, “We are delighted to enter into this agreement with Lincoln Park Capital, securing access to $40 million from a widely respected investor in the biotech industry and further strengthening Evaxion’s financial position for a period of market uncertainty. This capital facility will help advance our exciting portfolio of assets, including our personalized cancer drugs, developed in the EVX-01 and EVX-02 programs, both of which are currently in Phase 2 clinical development, as planned. . This gives us the momentum to achieve our next value-creating clinical milestones. Importantly, it also allows Evaxion to retain flexibility in deciding if and when to exercise the put option, so that we can continue to choose the optimal development path for the company.
Evaxion had cash and cash equivalents of $31.4 million at the end of the first quarter of 2022 and expects its cash position, excluding proceeds of the agreement, to be sufficient to fund operating expenses and capital expenditure needs for at least the next 12 months.
There is no upper limit to the price that LPC may pay to purchase the ADSs, and the purchase price will be based on the prevailing market prices of the ADSs at the time of each sale to LPC. Evaxion controls the timing and amount of any future sales of its ADSs to LPC. The Company may terminate the Agreement at any time, at its sole discretion, without additional cost or penalty. In return for entering into the Agreement, LPC received from the Company 428,572 Ordinary Shares represented by ADSs.
Evaxion Biotech A/S is a clinical-stage biotechnology company designing AI-based immunotherapies. Using our proprietary and scalable AI technology, we decode the human immune system to discover and develop new immunotherapies against cancer, bacterial diseases and viral infections. Evaxion has a broad portfolio of new product candidates, including three patient-specific cancer immunotherapies. It is located in Hørsholm, Denmark, with 70 employees.
About Lincoln Park Capital
Lincoln Park Capital is a Chicago-based investment group and asset management firm focused on investing in public and private companies, real estate, and money management strategies. LPC strives to make investments that align incentives and lead to mutually beneficial long-term relationships. Lincoln Park Capital bases its investment decisions on fundamental analysis, due diligence processes and experience. They make investments with a long-term view knowing that economic and market cycles require investors to be patient.
Source: Evaxion Biotech
This announcement contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this announcement regarding the Company’s future activities, plans and objectives are forward-looking statements. Although the Company believes that its expectations are based on reasonable assumptions, all statements other than statements of historical facts included in this announcement regarding future events are subject to (i) change without notice and (ii) independent factors. of the will of the Company. Such statements may include, but are not limited to, any statement preceded, followed by, or including words such as “target”, “believe”, “expect”, “hope”, “aim”, “have the intention”, “may”, “could”, “anticipate”, “envisage”, “continue”, “estimate”, “plan”, “potential”, “predict”, “project”, “will”, “may have”, “probable”, “should”, “would”, “could”, and other words and terms of similar meaning or their negative. Actual results may differ materially from those indicated by these forward-looking statements due to a variety of factors, including, but not limited to: risks associated with the financial condition of the Company and the need for additional capital; risks related to the Company’s development work; the cost and success of the Company’s product development activities and preclinical and clinical trials; the risks associated with the commercialization of any approved pharmaceutical product developed using the Company’s AI platform technology, including the rate and degree of market acceptance of the Company’s product candidates; risks related to the Company’s dependence on third parties, in particular for the conduct of clinical trials and the manufacture of products; risks associated with the Company’s inability to enter into partnerships; risks relating to governmental regulation; risks related to the protection of the Company’s intellectual property rights; risks related to personnel issues and growth management; risks related to the ADSs and common shares of the Company, risks related to the pandemic caused by the coronavirus known as COVID-19 and its variants such as Delta and Omicron, risks related to the recent invasion of Ukraine by Russia and other risks and uncertainties affecting the business activities and financial condition of the Company.
Forward-looking statements are subject to inherent risks and uncertainties beyond the Company’s control that could cause the Company’s actual results, performance or achievements to be materially different from any expected results, performance or achievements expressed or implied by these forward-looking statements. For a more detailed description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the Company’s business generally, see the risks described in the “Factors Statements” included in the company’s 2021 Annual Report on Form 20-F filed March 31, 2022, and the company’s current and future reports filed with or filed with the United States Securities and Exchange Commission (SEC). All forward-looking statements contained in this announcement speak only as of the date hereof, and except as required by law, the Company undertakes no obligation to publicly update such forward-looking statements or to update the reasons for which actual results could differ materially from those anticipated. in forward-looking statements, even if new information becomes available in the future.