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ORIGINAL: Vaxil Announces Closing of Bridge Financing and Provides Update on Corona Virus Vaccine Work
2020-03-04 09:20 ET - News Release
Not for distribution by US newswire or in United States
NESS-ZIONA, Israel, March 04, 2020 (GLOBE NEWSWIRE) -- VAXIL BIO LTD. (“Vaxil” or the “Company”) (TSX VENTURE: VXL), an innovative immunotherapy biotech company specializing in cancer and infectious diseases, announces that, subject to receipt of final TSX Venture Exchange (“Exchange”) approval, it has closed on $36,000 (“ConvertibleDebenture Proceeds”) of convertible debentures from third parties (see press release of February 21, 2020) and $95,000 (“Debenture Proceeds”) of non-convertible debentures to certain insiders (“Debentures”). The Debentures form part of a larger offering for maximum proceeds of $164,000.
The Debentures bear an annual interest rate of 10% (“DebentureInterest”). The Debentures and Debenture Interest will be repayable within two years. The Company shall have the right, but not the obligation, in its sole and absolute discretion, to pay and satisfy the Debenture Interest by the issuance of Common Shares (in accordance with Exchange policies). An additional $69,000 of Debentures remains to be placed.
The Company also announces that as of March 3, 2020, $352,000 (“Warrant Proceeds”) has been received from the exercise of 3,520,000 warrants, having an exercise price of $0.10 per warrant, that were previously issued in January 2018. Upon exercise of the warrants an additional 3,520,000 common shares of the Company will be issued.
Aggregate proceeds from the Debenture Proceeds, the Convertible Debenture Proceeds and the Warrant Proceeds will be used as a bridge financing to fund the Company’s corona virus (COVID-19) vaccine, including manufacturing a product for clinical trials, while the Company continues to explore additional financing avenues in order to be able to advance its research agenda.
We are also pleased to announce that the World Health Organization (“W.H.O”) has included Vaxil in a list of companies and institutions working on a vaccine candidate. (https://www.who.int/blueprint/priority-diseases/key-action/novel-coronavirus-landscape-ncov.pdf?ua=1)