Was Canceling The Private Placement A Good Thing Let’s look at the facts first...and you decide.
February and March the stock price fluctuates with several days trading tens of million of shares with spikes in the .20’s and as high as 33.5 cents on news of the pandemic hitting, patents being filed, and a search for partnerships all while waiting to further test their new vaccine candidate for Covid. It was one of the hottest stocks on the exchange those months with close to 300 million shares trading hands. The company was able to to cash in approximately 14.5 million 10 cent warrants during this time to fund a much depleted bank account. Suddenly they had 1.45 million in the bank.
April 13th
Vaxil updates on first preclinical experiment. “We are excited to see this early validation of our modelling," said David Goren,”
May 5th
Vaxil releases the joint collaboration with Hospital in Tel Aviv that will help them with their preclinical research. They make this statement. “The company does not anticipate the need to raise additional finances to finance this work.”
Stock price makes quick run to 17.5 cents, then retreats to 14 cents at close on 10 million share volume.
May 26th
Vaxil announces crazy dilutive Private Placement at 8.5 cents with a 13 cent warrant. My calculations had the total extra shares being added to the float at close to 80 million . The float would almost double with this financing. Existing shareholders that bought in during the February/ March run up were being diluted to add a few million to the coffers.
Question is....Did Vaxil need this money?
Between David Goren’s stock options of 4.5 million shares at 9 cents and roughly 22 million 10 cent warrants that expire at the end of January, the company could raise another $2.6 million dollars if they convert those 27 million shares.
Was it a sudden attempt to obtain government funding that would match their contribution? I guess we will never know. Vaxil Biotherapeutics / LESTER SCHEININGER, Consultant - 12-Month Lobbying Summary - Lobbyists Registration System - Office of the Commissioner of Lobbying of Canada
Let’s just say the rodent testing that is currently being performed goes very well for Vaxil. Where do you think the price will be if they release positive results and are suddenly days away from announcing Phase 1 for a Covid Vaccine? Selling those 9 cent options and 10 cent warrants should not be a problem. Suddenly the company would have over $4 million in its account....enough for phase 1.
Perhaps getting funding at that point would be a little easier as well???
I welcome the cancellation of this Private Placement that would have ballooned the share count, and allowed a bunch of bankers to load up on cheap shares at a moment before this stock price could explode on positive news from the lab.
Winner Winner Chicken Dinner.