CAMBRIDGE, Mass. - VBI Vaccines Inc. (NASDAQ:VBIV), a biopharmaceutical company specializing in immunology, has announced a registered direct offering of common shares and a concurrent private placement of warrants, expected to raise approximately $2 million. The transaction involves the sale of 2,272,728 common shares or equivalent pre-funded warrants at $0.88 each.
The accompanying private placement includes unregistered warrants to purchase an equivalent number of common shares, exercisable immediately upon issuance at $0.76 per share, with a five-year term. The offering is scheduled to close around April 11, 2024, contingent on customary closing conditions.
H.C. Wainwright & Co. is the exclusive placement agent for this offering. The proceeds are earmarked for working capital and general corporate purposes.
VBI's securities in this direct offering are part of a shelf registration statement filed with the SEC on August 26, 2022, and declared effective on September 6, 2022. The prospectus supplement and accompanying prospectus will be available on the SEC's website or through H.C. Wainwright & Co.
The unregistered warrants and shares of common stock underlying them have not been registered under the Securities Act of 1933 and are offered in compliance with exemptions from the registration requirements.
This announcement comes as VBI continues to develop vaccine candidates through its virus-like particle (VLP) technologies, targeting infectious diseases and cancers. The company has operations in Cambridge, Ottawa, and Rehovot, Israel.
The press release states that this announcement is not a solicitation for sale and that the securities cannot be sold in any jurisdiction where such activity would be unlawful without registration or qualification under the securities laws of that jurisdiction.
The information provided is based on a press release statement from VBI Vaccines Inc.
InvestingPro Insights
VBI Vaccines Inc. (NASDAQ:VBIV) has made headlines with its recent direct offering aimed at raising capital for its promising immunological research and development. The company's strategic movements come at a time when its financial metrics and market performance provide a mixed picture.
With a modest market capitalization of $20.89 million, VBI Vaccines is navigating through a challenging financial landscape. According to real-time data from InvestingPro, the company's revenue growth has been impressive over the last twelve months as of Q3 2023, with a staggering increase of 833.56%, suggesting a significant expansion in its business scale.
Still, this growth contrasts with a negative gross profit margin of -58.73% in the same period, reflecting costs that currently exceed revenues. The company's stock has experienced a substantial return of 31.57% over the last week, indicating a recent uptick in investor confidence, which may be related to the direct offering news or other market factors.
This volatility is a key aspect for investors to consider, as highlighted by one of the InvestingPro Tips that notes the stock's price movements are quite volatile.
While the company does not pay dividends, suggesting a focus on reinvestment for growth, another InvestingPro Tip indicates that analysts predict the company will be profitable this year, which could signal a turning point for VBI Vaccines.
For investors looking to delve deeper into VBI Vaccines' potential, there are additional InvestingPro Tips available at https://www.investing.com/pro/VBIV, including insights on net income growth expectations and sales forecasts for the current year.
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