Vaccinex prices 3.84M shares at 72.5c in private placement

Vaccinex has priced a $3.7 million private placement transaction with a lead investment from a major new investor alongside significant participation from existing investors, including entities affiliated with the Chairman of the Company’s Board of Directors and the Company’s CEO. The securities purchase agreement for the financing provides for the sale of an aggregate of 3,838,544 shares of the Company’s common stock together with common warrants to purchase up to an equal number of shares of common stock. The shares and warrants are being sold at a combined purchase price per share and warrant of $0.725. The common warrants will have an exercise price of $1.00 per share. The common warrants will be immediately exercisable and will expire five years from the initial exercise date, provided, however, that the Company may call the warrants within 120 days after reporting specified positive topline data in the Company’s ongoing SIGNAL-AD phase 1/2a clinical trial of its lead drug candidate, pepinemab, in Alzheimer’s disease. The closing of the offering is expected to occur on or before February 8, 2024, subject to the satisfaction of customary closing conditions. The gross proceeds from the offering are expected to be $3.7 million. The Company believes that together with the proceeds from its previously concluded public offering of $9.6 million in October 2023, the net proceeds from this financing together with other commitments will fully fund its ongoing SIGNAL-AD trial through the release of topline data, which is anticipated in the third quarter of 2024. In connection with the private placement, the Company is also entering 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, file with the Securities and Exchange Commission a registration statement covering the resale of the shares covered by the registration rights agreement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.