Vaccinex (VCNX) Announces 5.945M Share Private Placement at $1.11/sh

January 27, 2022 4:15 PM EST
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Vaccinex, Inc. (Nasdaq: VCNX), a clinical-stage biotechnology company pioneering novel investigational antibody therapies in cancer and neurodegenerative disease, today announced that the company entered into a stock purchase agreement before the market close on January 27, 2022 with a syndicate of new and existing investors for a private placement of 5,945,943 shares of common stock at a purchase price of $1.11 per share for aggregate gross proceeds of approximately $6.6 million. The private placement is expected to close on January 31, 2022, subject to customary closing conditions. No warrants, derivatives, or financial covenants are associated with the purchase agreement.

Participants in the private placement include entities controlled by Dr. Maurice Zauderer, President and CEO of Vaccinex , and Albert D. Friedberg, Chairman of Vaccinex’s board of directors, each of which purchased $2 million worth of shares, as well as an entity controlled by Jacob Frieberg, another member of Vaccinex’s board of directors, and additional new and existing shareholders that are unaffiliated with Vaccinex, that together purchased the remaining $2.6 million worth of shares.

Vaccinex intends to use the net proceeds from the private placement to fund the ongoing development of its lead drug candidate, pepinemab, in cancer and neurodegenerative disease and for working capital and general corporate purposes.

Vaccinex also announced that during the month of January, prior to entering into the stock purchase agreement, Vaccinex sold approximately $3.5 million of shares of its common stock in January 2022 for a weighted average sales price of $1.16 per share under its existing open market sales agreement with Jefferies, LLC. This brings the total of new equity financing to date in 2022 to $10.1 million.

In connection with the private placement, Vaccinex will also enter into a registration rights agreement with certain of the private placement investors. Pursuant to the registration rights agreement, Vaccinex will agree to, among other things, use its reasonable best efforts to file with the Securities and Exchange Commission (the SEC) a registration statement covering the resale of the shares.

A description of the stock purchase agreement and registration rights agreement will be included in a Form 8-K to be filed with the SEC.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale are unlawful. Any offering of the securities under the resale registration statement will only be by means of a prospectus.

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