Evaxion finalizes €3.5 million debt-to-equity deal with EIB

COPENHAGEN - Biotech firm Evaxion A/S (NASDAQ:EVAX), currently valued at $16.3 million and showing a FAIR financial health score according to InvestingPro, has finalized an agreement with the European Investment Bank (EIB) to convert €3.5 million of debt into equity, the company announced Friday.

Under the terms of the agreement, the EIB will purchase ordinary Evaxion warrants worth €3.5 million at a price of $4.87 per warrant, representing an 89% premium to Evaxion’s closing share price on Thursday. The deal settles half of Evaxion’s €7 million loan with the European lender. Notably, InvestingPro data shows the company maintains more cash than debt on its balance sheet, suggesting prudent financial management.

The transaction immediately increases Evaxion’s equity by $4.1 million (€3.5 million) and reduces the clinical-stage company’s overall liabilities. The agreement also simplifies the firm’s balance sheet while improving its financial flexibility and cash flow, according to the press release statement. While the company reported -$13.84 million in EBITDA for the last twelve months, analysts maintain optimistic price targets ranging from $6 to $19.75 per share.

"The agreement further simplifies our balance sheet and improves our cash flow, which is an important element in the financial management of the company," said Thomas F. Schmidt, CFO of Evaxion.

Evaxion describes itself as a TechBio company developing AI-powered vaccines. The company has a clinical-stage oncology pipeline of personalized vaccines and a preclinical infectious disease pipeline targeting bacterial and viral diseases.

The debt settlement comes as many biotech companies continue to seek ways to strengthen their financial positions amid challenging market conditions for the sector. For deeper insights into Evaxion’s financial health and comprehensive analysis of over 1,400 US stocks, visit InvestingPro for exclusive research reports and expert analysis.

In other recent news, Evaxion Biotech has announced significant progress in its vaccine development efforts. The company is actively advancing a preventive vaccine against Group A Streptococcus, known as EVX-B4, marking an important addition to its pipeline. This development comes as Evaxion also secures a grant from the Gates Foundation for creating a novel polio vaccine using its AI-Immunology platform. The funding will support the design of new vaccine constructs without incurring additional costs, aiming to address the ongoing risk of polio resurgence.

In the oncology sector, Evaxion reported promising results from its Phase 2 trial for the EVX-01 cancer vaccine, demonstrating an 80% immune response rate in advanced melanoma cases. This high response rate, presented at the American Association for Cancer Research Annual Meeting, surpasses previous figures for similar vaccine candidates. Additionally, Evaxion has extended its cash runway until mid-2026, with cash and equivalents rising to $17.8 million as of March 31, 2025, supporting its operational needs.

H.C. Wainwright has maintained its Buy rating for Evaxion, with a price target of $14, reflecting confidence in the company’s strategic progress. The analyst noted Evaxion’s plans to unveil a vaccine for infectious diseases by mid-2025, aligning with its R&D milestones. Evaxion’s collaboration with MSD on the EVX-B2 and EVX-B3 programs is also progressing, with potential option exercises anticipated later this year, which could lead to milestone payments and royalties. These developments highlight Evaxion’s ongoing efforts in leveraging artificial intelligence for innovative vaccine solutions.

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