Vaxcyte Announces Pricing of $100 Million Public Offering

Rhea-AI Summary

Vaxcyte, Inc. (Nasdaq: PCVX) has announced a public offering of 2,500,000 shares of common stock and pre-funded warrants, priced at $20.00 and $19.999 per share, respectively. The offering is expected to generate approximately $100 million in gross proceeds, excluding the exercise of warrants. The offering is anticipated to close on January 18, 2022, subject to customary conditions. Vaxcyte has also granted underwriters a 30-day option for an additional 750,000 shares.

Positive

• Expected gross proceeds of approximately $100 million to support business development.
• Underwriter option for additional shares may enhance liquidity.

Negative

• Potential dilution of existing shares due to the new stock offering.

SAN CARLOS, Calif., Jan. 13, 2022 (GLOBE NEWSWIRE) -- Vaxcyte, Inc. (Nasdaq: PCVX), a vaccine innovation company engineering high-fidelity vaccines to protect humankind from the consequences of bacterial diseases, today announced the pricing of an underwritten public offering of common stock and pre-funded warrants. Vaxcyte is selling 2,500,000 shares of common stock and pre-funded warrants to purchase 2,500,000 shares of common stock in the offering. The shares of common stock are being sold at a public offering price of $20.00 per share, and the pre-funded warrants are being sold at a public offering price of $19.999 per underlying share. The aggregate gross proceeds to Vaxcyte from this offering are expected to be approximately $100.0 million, before deducting underwriting discounts and commissions and other estimated offering expenses, and excluding the exercise of any pre-funded warrants. All shares of common stock and pre-funded warrants to be sold in the offering will be offered by Vaxcyte. Vaxcyte has granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of its common stock at the public offering price per share.

The offering is expected to close on January 18, 2022, subject to the satisfaction of customary closing conditions.

BofA Securities, Jefferies and Evercore ISI are acting as joint book-running managers for the offering. Cantor is acting as lead manager for the offering. Needham & Company is acting as co-manager for the offering.

A shelf registration statement relating to the offered securities was filed with the Securities and Exchange Commission (SEC), and was automatically effective upon filing on July 2, 2021. A preliminary prospectus supplement and accompanying prospectus relating to the offering has been filed, and a final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and are or will be available on the SEC’s website, located at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained, when available, from BofA Securities NC1-004-03-43, Attention: Prospectus Department, 200 North College Street, 3rd Floor, Charlotte, North Carolina 29255 or by email at dg.prospectus_requests@bofa.com; Jefferies LLC, Attention: Equity Syndicate Department, 520 Madison Avenue, 2nd Floor, New York, New York 10022, by telephone at 1-877-821-7388, or by email at Prospectus_Department@Jefferies.com; Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, New York 10055, by telephone at 1-888-474-0200 or by email at ecm.prospectus@evercore.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Vaxcyte

Vaxcyte is a vaccine innovation company engineering high-fidelity vaccines to protect humankind from the consequences of bacterial diseases. The Company is developing broad-spectrum conjugate and novel protein vaccines to prevent or treat bacterial infectious diseases. Vaxcyte’s lead candidate, VAX-24, is a 24-valent, broad-spectrum pneumococcal conjugate vaccine being developed for the prevention of invasive pneumococcal disease. Vaxcyte is re-engineering the way highly complex immunizations are made through modern synthetic techniques, including advanced chemistry and the XpressCFTM cell-free protein synthesis platform, exclusively licensed from Sutro Biopharma, Inc. Unlike conventional cell-based approaches, the Company’s system for producing difficult-to-make proteins and antigens is intended to accelerate its ability to efficiently create and deliver high-fidelity vaccines with enhanced immunological benefits. Vaxcyte’s pipeline also includes VAX-XP, a PCV with an expanded breadth of coverage of greater than 30 strains; VAX-A1, a prophylactic vaccine candidate designed to prevent Group A Strep infections; and VAX-PG, a therapeutic vaccine candidate designed to slow or stop the progression of periodontal disease. Vaxcyte is driven to eradicate or treat invasive bacterial infections, which have serious and costly health consequences when left unchecked.

Contacts: Andrew Guggenhime, President and Chief Financial Officer Vaxcyte, Inc. 650-837-0111 investors@vaxcyte.com Janet Graesser, Vice President, Corporate Communications and Investor Relations Vaxcyte, Inc. 917-685-8799 media@vaxcyte.com

FAQ

What is the purpose of Vaxcyte's stock offering on January 13, 2022?

The offering aims to raise approximately $100 million for business development.

How many shares is Vaxcyte offering?

Vaxcyte is offering 2,500,000 shares of common stock and pre-funded warrants.

What is the pricing of Vaxcyte's common stock in the offering?

The common stock is priced at $20.00 per share, while pre-funded warrants are priced at $19.999.

When is Vaxcyte's public offering expected to close?

The offering is expected to close on January 18, 2022.

What are the risks associated with Vaxcyte's stock offering?

Existing shareholders may face dilution due to the new shares being issued.