Novavax Raising $200 Million to Fund Coronavirus and Flu Vaccine Efforts

Novavax (NASDAQ: NVAX) announced on Monday that it plans to raise around $200 million through a private placement with RA Capital Management. An investment fund affiliated with RA Capital will purchase a quantity of Series A Convertible preferred stock from Novavax that is convertible into 4,388,852 shares of common stock.

The biotech intends to use the additional capital to help fund its development of a COVID-19 vaccine candidate and to advance its U.S. regulatory filing for approval of flu vaccine NanoFlu. CEO Stanley C. Erck stated that Novavax believes that the RA Capital transaction "signals a high level of confidence in the significant progress of our COVID-19 and influenza vaccine programs."

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Source Fool.com