BioVaxys completes first tranche of controversial private placement
- BioVaxys Technology Corp. has closed the first tranche of a private placement, issuing 2,200,000 units for $110,000.
- The company is settling $500,000 in debt by issuing shares instead of cash to preserve working capital.
- These moves signify a strategic financial approach to enhance operational funding and manage existing liabilities.
In Vancouver, Canada, on December 13, 2024, BioVaxys Technology Corp. announced the successful closing of the first tranche of its previously planned non-brokered private placement. This financial maneuver involved the issuance of 2,200,000 units at a set price of $0.05 each, generating aggregate gross proceeds of $110,000. Each unit consists of one common share and one detachable warrant, allowing for the acquisition of an additional common share at an exercise price of $0.15 for a period extending until December 13, 2026. The collected funds from this tranche will be utilized for the company’s working capital needs, reflecting a strategic move to bolster its financial position while addressing market opportunities. In conjunction with this fund-raising effort, the company also revealed a debt settlement agreement with an arm's-length consultant, through which it plans to address $500,000 of outstanding debt. This will be executed by issuing 5,000,000 shares at a deemed price of $0.10 per share. By opting for a share-based compensation instead of cash, BioVaxys aims to preserve cash flow essential for continuing operations and future growth, underlining their priorities amid financial challenges. The company’s securities are subjected to a statutory hold period of four months from the date of issuance, which means they cannot be traded until April 14, 2025. Moreover, the announcement clarifies that these securities have not been registered under the United States Securities Act or any state securities laws, highlighting the careful handling of cross-border regulations and compliance in the financing process. The execution of this agreement reflects both a proactive approach towards debt management and a commitment to maintaining the necessary capital for innovation and operational activities. BioVaxys Technology Corp., listed on the Canadian Securities Exchange and the Frankfurt Bourse, utilizes its proprietary DPX™ antigen delivery platform for vaccines targeting both cancer and infectious diseases. The forward-looking statements made by the company emphasize their commitment to developing effective vaccine options amidst the competitive landscape of biopharmaceuticals. The annoucement resonates with their ongoing objectives to ensure financial stability while advancing their groundbreaking work in medical technologies.