Evaxion Strengthens Financial Position with EIB Agreement
Evaxion Finalizes Strategic Agreement with EIB
Evaxion A/S (NASDAQ: EVAX), a pioneering clinical-stage TechBio company that specializes in developing vaccines powered by AI-Immunology™, has successfully concluded a significant agreement with the European Investment Bank (EIB). This agreement will allow Evaxion to convert €3.5 million of its outstanding €7 million loan to EIB into equity. This pivotal change will enable EIB to obtain ordinary Evaxion warrants worth this amount, showcasing a progressive approach toward strengthening the company's financial standing.
EIB Purchases Warrants at Premium Price
The EIB will purchase these warrants at a price of $4.87 each, which reflects a premium of 89% over the share price recording at market close the previous day. This strategic move not only increases Evaxion's equity by $4.1 million (€3.5 million) immediately, but it also fosters a more robust capital structure for the company.
Enhancing Financial Flexibility and Reducing Liabilities
By converting its loan into equity, Evaxion is taking a bold step toward reducing its overall liabilities. This maneuver simplifies the company's balance sheet while simultaneously improving its financial flexibility and cash flow. Such improvements are crucial in ensuring that Evaxion can navigate the competitive landscape of biotech innovation effectively.
Executive Insight on the Agreement
“We are thrilled to finalize the agreement with the EIB under terms that favor Evaxion and our stakeholders. We are thankful to the EIB for their unwavering support and constructive engagement during our negotiations. This agreement enhances our financial management by improving our cash flow and simplifying our balance sheet,” commented Thomas F. Schmidt, CFO of Evaxion.
About Evaxion and Its Commitment to Innovation
Evaxion stands out as a trailblazer in the TechBio domain, leveraging its proprietary AI platform, AI-Immunology™, to innovate how vaccines are developed. Their advanced AI prediction models harness the incredible capacities of artificial intelligence to decode the human immune system, leading to the creation of pioneering immunotherapies aimed at treating cancer, bacterial diseases, and viral infections.
Expanding the Pipeline for Future Innovations
Evaxion's commitment to innovation is reflected in their clinical-stage oncology pipeline, which includes personalized vaccines designed to meet high unmet medical needs. Additionally, their preclinical pipeline is focused on addressing infectious diseases, emphasizing a holistic approach to improving patient outcomes through targeted therapies.
Contact Information for Stakeholders
Contact Information
Evaxion A/S
Mads Kronborg
Vice President, Investor Relations & Communication
+45 53 54 82 96
mak@evaxion.ai
Frequently Asked Questions
What is the agreement with the EIB about?
The agreement allows Evaxion to convert €3.5 million of its debt into equity through the purchase of warrants by the EIB.
How does this agreement affect Evaxion’s finances?
This agreement immediately increases Evaxion's equity by $4.1 million and significantly reduces its overall liabilities.
What are AI-Immunology™ powered vaccines?
AI-Immunology™ powered vaccines are developed using advanced AI models to create personalized treatments based on the human immune system's data.
Who is the CFO of Evaxion?
Thomas F. Schmidt serves as the Chief Financial Officer of Evaxion, overseeing financial strategies and agreements.
What is the future outlook for Evaxion?
With its strengthened financial position and innovative pipelines, Evaxion aims to enhance its product offerings in both oncology and infectious diseases.
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