ROCHESTER, N.Y. - Vaccinex, Inc. (NASDAQ:VCNX), a clinical-stage biotech company, has announced the sale of its common stock and warrants in a combined registered direct offering and concurrent private placement, expecting to close the transaction on or about March 28, 2024. The deal involves the sale of 193,000 shares and an equal number of warrants, with the warrants exercisable immediately upon issuance and set to expire five years from the initial exercise date.
The company, which is focused on developing treatments for Alzheimer’s disease and cancer by targeting SEMA4D, has set the combined purchase price at $7.77 per share and accompanying warrant, with an exercise price for the warrants at $7.64 per share. The gross proceeds from the transactions are anticipated to be around $1.5 million before financial advisory fees and other estimated expenses are deducted.
Vaccinex intends to deploy the net proceeds from the sale for working capital and general corporate purposes. This financial move comes as the company continues to advance its lead drug candidate, pepinemab, in clinical studies for various neurodegenerative diseases and cancers.
In addition to the registered direct offering, Vaccinex has also agreed to a separate private placement of common stock and warrants that could raise between $1.1 million and $1.25 million, also expected to close concurrently on or about March 28, 2024.
The offerings are being made under an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC).
This financial news is based on a press release statement from Vaccinex, Inc.
InvestingPro Insights
Vaccinex, Inc. (NASDAQ:VCNX), a company at the forefront of developing innovative treatments for serious diseases, has been navigating a challenging financial landscape, as highlighted by recent data and analyst insights from InvestingPro. With a market capitalization of just $8.81 million, the company's size remains relatively small within the volatile biotech industry. Despite an impressive revenue growth of 1490% in the last twelve months as of Q1 2023, Vaccinex is grappling with substantial gross profit margin challenges, reflected in a negative margin of -1658.36% over the same period.
InvestingPro Tips suggest that while analysts are expecting some sales growth in the current year, they are not optimistic about the company's profitability, noting that Vaccinex is quickly burning through cash and that its short-term obligations exceed its liquid assets. These financial pressures are evident in the stock's performance, with Vaccinex trading near its 52-week low and experiencing a significant price decline of -91.23% over the past year.
For investors considering participating in the recent stock and warrants sale, it is worth noting that Vaccinex operates with a moderate level of debt and does not pay a dividend to shareholders. The company's stock has also taken a considerable hit over the last week, month, and six months, with total returns of -9.03%, -11.28%, and -22.85%, respectively. These metrics could be crucial for understanding the risks associated with this investment.
For a more comprehensive analysis, interested parties can find additional InvestingPro Tips for Vaccinex, Inc. at https://www.investing.com/pro/VCNX. There are currently 15 additional tips available that could provide deeper insights into the company's financial health and stock performance. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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