Why Novavax Shares Are Jumping Today
Shares of Novavax (NASDAQ: NVAX) were jumping 8.6% higher as of 11:22 a.m. EDT on Monday after rising as much as 12.6% earlier in the day. The nice gain resulted from the company's announcement that it was raising around $200 million in gross proceeds through a private placement deal with RA Capital Management. Novavax will sell Series A Convertible preferred stock that's convertible into nearly 4.4 million shares of common stock to an affiliate of RA Capital.
Novavax's latest capital raise underscores just how attractive the company has become to the investment manager community. CEO Stanley Erck said that the biotech's management team believes the support from RA Capital "signals a high level of confidence in the significant progress of our COVID-19 and influenza vaccine programs." He's right. And it's not just investment managers who are interested in Novavax.
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Source Fool.com
