Evaxion secures Nasdaq listing with equity boost

COPENHAGEN - Evaxion Biotech A/S (NASDAQ: EVAX), a clinical-stage TechBio company with a current market capitalization of $16.36 million, has confirmed its compliance with Nasdaq's minimum stockholders' equity requirement, ensuring its continued listing on the exchange. The Danish firm, which specializes in AI-powered immunotherapies, announced it has exceeded the required equity threshold following recent capital market activities.

Evaxion's equity was bolstered by a public offering on January 31, 2025, that raised $10.8 million, along with approximately $7.6 million from prefunded warrants and American Depositary Shares sales. These efforts have extended the company's cash runway to mid-2026, providing financial stability as it advances its clinical and preclinical pipelines. According to InvestingPro data, the company maintains more cash than debt on its balance sheet, though analysts note it has been quickly burning through cash reserves.

The Nasdaq compliance notice also sets a one-year Mandatory Panel Monitor for Evaxion, during which the company must maintain the minimum equity requirement or face delisting without the opportunity to submit a new compliance plan. InvestingPro analysis reveals the stock typically trades with high price volatility and often moves counter to market trends with a beta of -0.27. Get access to 12 more exclusive ProTips and comprehensive analysis with InvestingPro.

Further strengthening of Evaxion's equity is anticipated with the expected conversion of part of its loan from the European Investment Bank (EIB) into equity. The conversion, involving €3.5 million of a €7 million loan, is projected to add an additional $3.7 million to the company's equity upon completion in the first quarter of 2025.

Evaxion CEO Christian Kanstrup expressed satisfaction with the Nasdaq confirmation, emphasizing the company's focus on executing its strategy and pursuing its 2025 milestones.

This development follows a challenging period for Evaxion, which faced potential delisting due to non-compliance with Nasdaq's financial requirements. The successful capital raising and ongoing discussions with the EIB reflect the company's proactive measures to secure its financial footing and support its mission to develop novel immunotherapies using its proprietary AI-Immunology™ platform. Despite current challenges, analysts project revenue growth of nearly 50% for the current year. For detailed insights and Fair Value analysis, access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering this and 1,400+ other US stocks.

The information in this article is based on a press release statement from Evaxion Biotech A/S.

In other recent news, Evaxion Biotech has made significant strides in both financial and research developments. The biotech company recently completed a public offering, issuing nearly 4 million American Depositary Shares and raising roughly $10.8 million in gross proceeds. H.C. Wainwright, a reputable analyst firm, has maintained a Buy rating on Evaxion stock with a $14 target. This move, coupled with an increased investment from existing shareholder Merck (NSE:PROR), suggests confidence in Evaxion's future prospects.

In addition to these financial activities, Evaxion has achieved preclinical success with its AI-Immunology™ platform. The platform, designed to identify potent endogenous retrovirus (ERV) antigenic hotspots, has demonstrated its potential in the development of vaccines effective for a wide patient population. The company plans to continue development with the aim of selecting a lead ERV precision vaccine candidate in the second half of 2025.

These are recent developments for Evaxion Biotech. The company's successful public offering and preclinical success with its AI cancer vaccine indicate a positive trajectory. However, as with any investment, potential investors are advised to conduct their own research and consider the opinions of various analysts.

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