Evaxion Biotech is using artificial intelligence (AI) in its cancer vaccine development. Through its proprietary AI platform, the company has AI-Immunology two cancer vaccine candidates in clinical development, EVX-01 and EVX–02.
Evaxion has been in a process for the past year with Nasdaq about a looming delisting of the company's depositary receipts, as it did not have sufficient equity. Nasdaq requires at least 2,5 million USD for a company to have its shares listed on the main list in the US. After discussions with the exchange operator, the company was given 180 days in early January to resolve the situation.
Measures to strengthen finances
Since then, the company has restored equity through the exercise of pre-paid warrants and the sale of depositary receipts through its ATM facility, securing USD 7,8 million and extending the company's cash balance through the fourth quarter of 2025.
Furthermore, discussions are also being held with European Investment Bank (EIB) for a conversion of EUR 3,5 million of the company's total loan of EUR 7 million. Such a conversion would directly increase Evaxion's equity by the equivalent of USD 3,7 million. An agreement with the EIB is subject to certain conditions and is expected to be finalized and implemented in the first quarter of 2025, ahead of the new deadline set by Nasdaq.
Additional funding through new issue
Now, further measures are being announced through the new issue, which included just under 4 million depository receipts, with a subscription price set at USD 2,71. This increases Evaxion's cash by USD 10,8 million. For every second depository receipt, a warrant was also issued, with a term of five years. Here too, the subscription price was set at USD 2,71. Among the investors are MSD Global Health Innovation Fund, together with other life science funds, as well as the board and management.
With the capital raising, the company strengthens its finances by a total of approximately USD 18,6 million gross and the discussions with the EIB may further improve the financial situation. In addition to now meeting Nasdaq's requirements, Evaxion estimates that the business will be financed into early 2026.