Evaxion pursues agreement with EIB to bolster equity through conversion of debt into equity
Evaxion Biotech (NASDAQ: EVAX) is in advanced discussions with the European Investment Bank (EIB) to convert €3.5 million of its €7 million loan into an equity-type instrument. The conversion is expected to increase Evaxion's equity by $3.7 million upon completion in Q1 2025. This strategic move aims to ensure compliance with Nasdaq listing requirements and strengthen the company's financial position.
As Evaxion's only debt is the EIB loan, the conversion would significantly reduce overall liabilities, simplify the balance sheet, and improve financial flexibility and cash flow. The terms under discussion are reported to be favorable for both the company and its shareholders.
Evaxion Biotech (NASDAQ: EVAX) è in trattative avanzate con la Banca Europea per gli Investimenti (BEI) per convertire 3,5 milioni di euro del suo prestito di 7 milioni di euro in uno strumento di tipo azionario. Si prevede che la conversione aumenti il capitale di Evaxion di 3,7 milioni di dollari al termine del primo trimestre del 2025. Questa mossa strategica mira a garantire la conformità con i requisiti di quotazione Nasdaq e a rafforzare la posizione finanziaria dell'azienda.
Poiché l'unico debito di Evaxion è il prestito della BEI, la conversione ridurrebbe significativamente le passività complessive, semplificherebbe il bilancio e migliorerebbe la flessibilità finanziaria e il flusso di cassa. Si riporta che i termini in discussione siano favorevoli sia per l'azienda che per i suoi azionisti.
Evaxion Biotech (NASDAQ: EVAX) está en conversaciones avanzadas con el Banco Europeo de Inversiones (BEI) para convertir 3,5 millones de euros de su préstamo de 7 millones de euros en un instrumento de tipo capital. Se espera que la conversión aumente el capital de Evaxion en 3,7 millones de dólares una vez completada en el primer trimestre de 2025. Este movimiento estratégico tiene como objetivo asegurar el cumplimiento de los requisitos de cotización de Nasdaq y fortalecer la posición financiera de la empresa.
Dado que la única deuda de Evaxion es el préstamo del BEI, la conversión reduciría significativamente las obligaciones generales, simplificaría el balance y mejoraría la flexibilidad financiera y el flujo de caja. Los términos en discusión se informan como favorables tanto para la empresa como para sus accionistas.
Evaxion Biotech (NASDAQ: EVAX)는 유럽 투자 은행 (EIB)과 7백만 유로의 대출 중 3.5백만 유로를 주식형 instrument로 전환하기 위한 고급 논의를 진행 중입니다. 이 전환은 2025년 1분기 완료 시 Evaxion의 자본을 3.7백만 달러 증가시킬 것으로 예상됩니다. 이 전략적 움직임은 나스닥 상장 요건을 준수하고 회사의 재무 상태를 강화하는 것을 목표로 하고 있습니다.
Evaxion의 유일한 부채가 EIB 대출인 관계로, 이 전환은 전체 부채를 크게 줄이고 재무 제표를 단순화하며 재무 유연성과 현금 흐름을 개선할 것입니다. 논의 중인 조건이 회사와 주주 모두에게 유리하다고 보도되고 있습니다.
Evaxion Biotech (NASDAQ: EVAX) est en pourparlers avancés avec la Banque Européenne d'Investissement (BEI) pour convertir 3,5 millions d'euros de son prêt de 7 millions d'euros en un instrument de type capital. On s'attend à ce que la conversion augmente le capital d'Evaxion de 3,7 millions de dollars lors de son achèvement au premier trimestre 2025. Ce mouvement stratégique vise à assurer la conformité avec les exigences de cotation Nasdaq et à renforcer la position financière de l'entreprise.
Comme la seule dette d'Evaxion est le prêt de la BEI, la conversion réduirait considérablement les passifs globaux, simplifierait le bilan et améliorerait la flexibilité financière ainsi que le flux de trésorerie. Les conditions en discussion seraient favorables à la fois pour l'entreprise et pour ses actionnaires.
Evaxion Biotech (NASDAQ: EVAX) befindet sich in fortgeschrittenen Verhandlungen mit der Europäischen Investitionsbank (EIB), um 3,5 Millionen Euro von seinem Darlehen in Höhe von 7 Millionen Euro in ein Eigenkapitalinstrument umzuwandeln. Es wird erwartet, dass die Umwandlung das Eigenkapital von Evaxion bis zum Abschluss im ersten Quartal 2025 um 3,7 Millionen Dollar erhöht. Dieser strategische Schritt zielt darauf ab, die Einhaltung der Nasdaq-Listing-Anforderungen sicherzustellen und die finanzielle Position des Unternehmens zu stärken.
Da Evaxions einzige Verschuldung das EIB-Darlehen ist, würde die Umwandlung die Gesamtschulden erheblich reduzieren, die Bilanz vereinfachen und die finanzielle Flexibilität sowie den Cashflow verbessern. Die diskutierten Bedingungen sollen sowohl für das Unternehmen als auch für die Aktionäre vorteilhaft sein.
- Expected $3.7M immediate equity increase through debt conversion
- Reduction of total debt by 50% (€3.5M out of €7M)
- Improved financial flexibility and cash flow
- Simplified balance sheet structure
- Current risk of non-compliance with Nasdaq listing requirements
- Remaining €3.5M debt burden with EIB
Insights
- Evaxion and the European Investment Bank (EIB) are in advanced discussions about conversion of
€3.5 million out of Evaxion’s€7 million loan with EIB into an equity-type instrument - Such conversion is expected to increase Evaxion’s equity by
$3.7 million immediately upon completion - The conversion would significantly enhance Evaxion’s equity and capital structure. As such, it is an important part of Evaxion’s plan on ensuring ongoing compliance with the Nasdaq listing requirements
- An agreement is expected to be finalized and implemented in the first quarter of 2025
COPENHAGEN, Denmark, December 17, 2024 - Evaxion Biotech A/S (NASDAQ: EVAX) (“Evaxion”), a clinical-stage TechBio company specializing in developing AI-Immunology™ powered vaccines, is pursuing a significant expected enhancement of its equity and capital structure through a conversion of debt into equity. Evaxion is currently in advanced discussions with the European Investment Bank (EIB) about conversion of
A conversion is expected to increase Evaxion’s equity by
“We are very pleased to have advanced discussions with EIB and to have taken this important step to significantly strengthen our equity through a conversion of debt. The terms being discussed with EIB are favorable to us and our shareholders, and a reduction in our long-term liabilities should improve our standing in the financial community. We appreciate the ongoing support from EIB,” says Christian Kanstrup, CEO of Evaxion.
Evaxion obtained the loan from EIB in 2020. An agreement between Evaxion and EIB would be subject to certain conditions. Such agreement is expected to be finalized and implemented in the first quarter of 2025.
Contact information
Evaxion Biotech A/S
Mads Kronborg
Vice President, Investor Relations & Communication
+45 53 54 82 96
mak@evaxion-biotech.com
About EVAXION
Evaxion Biotech A/S is a pioneering TechBio company based upon its AI platform, AI-Immunology™. Evaxion’s proprietary and scalable AI prediction models harness the power of artificial intelligence to decode the human immune system and develop novel immunotherapies for cancer, bacterial diseases, and viral infections. Based upon AI-Immunology™, Evaxion has developed a clinical-stage oncology pipeline of novel personalized vaccines and a preclinical infectious disease pipeline in bacterial and viral diseases with high unmet medical needs. Evaxion is committed to transforming patients’ lives by providing innovative and targeted treatment options. For more information about Evaxion and its groundbreaking AI-Immunology™ platform and vaccine pipeline, please visit our website.
Forward-looking statement
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “target,” “believe,” “expect,” “hope,” “aim,” “intend,” “may,” “might,” “anticipate,” “contemplate,” “continue,” “estimate,” “plan,” “potential,” “predict,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could,” and other words and terms of similar meaning identify forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors, including, but not limited to, risks related to: our financial condition and need for additional capital; our development work; cost and success of our product development activities and preclinical and clinical trials; commercializing any approved pharmaceutical product developed using our AI platform technology, including the rate and degree of market acceptance of our product candidates; our dependence on third parties including for conduct of clinical testing and product manufacture; our inability to enter into partnerships; government regulation; protection of our intellectual property rights; employee matters and managing growth; our ADSs and ordinary shares, the impact of international economic, political, legal, compliance, social and business factors, including inflation, and the effects on our business from other significant geo-political and macro-economic events; and other uncertainties affecting our business operations and financial condition. For a further discussion of these risks, please refer to the risk factors included in our most recent Annual Report on Form 20-F and other filings with the U.S. Securities and Exchange Commission (SEC), which are available at www.sec.gov. We do not assume any obligation to update any forward-looking statements except as required by law.
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