Will Novavax see more decline after Thursday's 34% drop? Vaccine manufacturers price stock offer at 13% off
Shares of Maryland-based coronavirus vaccine maker Novavax Inc. NVAX fell more than 34% on Thursday as traders reacted negatively to its stock and debt offering . The company announced the terms of the dual offer on Thursday evening.
What happened: Novavax said it priced its underwritten public offering to sell 6.5 million shares of common stock at $10 per share. This represents a discount from the price of $11.32 at which the stock closed on Thursday after the steep drop.
The company expects net proceeds of $60.7 million from the offering, which is expected to close on December 20.
See also: The best biotech stocks right now
Novavax said it has priced the debt offering of $150 million of 5% convertible senior notes due 2027, and that debt is being offered to institutional buyers qualified.
The Notes are senior unsecured obligations and will bear interest, payable semi-annually in arrears. They mature on December 15, 2027 and will be convertible at an initial conversion rate of $12.50 per share. The company expects net proceeds from the note issuance to be approximately $142.2 million.
Novavax intends to use the total net proceeds from both offerings for general corporate purposes, including the continued global commercial launch of its Nuvaxovid COVID-19 vaccine, the debt repayment, R&D expenditures and capital expenditures, among others. .
Why it matters: Novavax's growth prospects are uncertain. The adoption of its COVID-19 vaccine, its only commercial product to date, will likely be affected by the reduction in the pandemic in most countries.
Price Action: Novavax settled Thursday's session down 34.30%, at $11.32, according to Benzinga Pro data. The stock lost 1.77% in after-hours trading.
Read next: Novavax ends agreement with GAVI Alliance for sale of its COVID-19 vaccines
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Shares of Maryland-based coronavirus vaccine maker Novavax Inc. NVAX fell more than 34% on Thursday as traders reacted negatively to its stock and debt offering . The company announced the terms of the dual offer on Thursday evening.
What happened: Novavax said it priced its underwritten public offering to sell 6.5 million shares of common stock at $10 per share. This represents a discount from the price of $11.32 at which the stock closed on Thursday after the steep drop.
The company expects net proceeds of $60.7 million from the offering, which is expected to close on December 20.
See also: The best biotech stocks right now
Novavax said it has priced the debt offering of $150 million of 5% convertible senior notes due 2027, and that debt is being offered to institutional buyers qualified.
The Notes are senior unsecured obligations and will bear interest, payable semi-annually in arrears. They mature on December 15, 2027 and will be convertible at an initial conversion rate of $12.50 per share. The company expects net proceeds from the note issuance to be approximately $142.2 million.
Novavax intends to use the total net proceeds from both offerings for general corporate purposes, including the continued global commercial launch of its Nuvaxovid COVID-19 vaccine, the debt repayment, R&D expenditures and capital expenditures, among others. .
Why it matters: Novavax's growth prospects are uncertain. The adoption of its COVID-19 vaccine, its only commercial product to date, will likely be affected by the reduction in the pandemic in most countries.
Price Action: Novavax settled Thursday's session down 34.30%, at $11.32, according to Benzinga Pro data. The stock lost 1.77% in after-hours trading.
Read next: Novavax ends agreement with GAVI Alliance for sale of its COVID-19 vaccines
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
What's Your Reaction?
