On April 3, 2023 Vaccinex, Inc. (Nasdaq: VCNX) ("Vaccinex" or the "Company"), a clinical-stage biotechnology company pioneering a differentiated approach to treating neurodegenerative disease and cancer through the inhibition of SEMA4D, reported that on March 30, 2023 the company closed the private placement of an aggregate of 4,975,608 shares of its common stock at a purchase price of $0.41 per share for aggregate gross proceeds of $2.04 million (Press release, Vaccinex, APR 3, 2023, https://ir.vaccinex.com/news-releases/news-release-details/vaccinex-announces-private-placement-commitments-50-million [SID1234629763]). No warrants, derivatives, or financial covenants are associated with the private placement.
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Participants in the private placement included entities controlled by Dr. Maurice Zauderer, President and CEO of Vaccinex and a member of the board of directors, and Albert D. Friedberg, Chairman of Vaccinex’s board of directors. These investors purchased an aggregate of $2.0 million worth of shares, and an investor unaffiliated with Vaccinex purchased the remaining shares. In addition, pursuant to the stock purchase agreement for the private placement, the entity controlled by Mr. Friedberg, FCMI Parent Co., made a binding commitment to purchase, on or prior to May 15, 2023, up to an additional $2.96 million of shares of the Company’s common stock, less the aggregate purchase price of securities of the Company other than the shares sold by the Company to investors other than Mr. Friedberg and his affiliates after the closing and on or prior to May 15, 2023, in effect reflecting a total commitment of $5.0 million in new financing.
Vaccinex intends to use the net proceeds from the private placement to fund the ongoing development and clinical trials of its lead drug candidate, pepinemab, in Alzheimer’s disease and in cancer and for working capital and general corporate purposes.
More detailed descriptions of the stock purchase agreement will be included in a Form 8-K filed with the Securities and Exchange Commission.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale are unlawful. Any offering of the securities under the resale registration statement will only be by means of a prospectus.