Virax Biolabs closes $5 million private placement

Virax Biolabs Group Limited (NASDAQ: VRAX) completed a private placement of securities for gross proceeds of $5 million, the biotechnology company announced.

The company sold 12.5 million ordinary shares and preferred investment options to purchase up to 12.5 million ordinary shares at a combined price of $0.3999 per pre-funded warrant and accompanying preferred investment option. The pre-funded warrants have an exercise price of $0.0001 per share and do not expire, while the preferred investment options carry an exercise price of $0.40 per ordinary share and are exercisable for five years.

H.C. Wainwright & Co. served as the exclusive placement agent for the offering.

Virax intends to use the net proceeds for general working capital needs. The company stated the funding extends its cash runway into the first half of 2028, beyond the planned completion of its U.S.-based regulatory study for post-acute sequelae of COVID-19 for FDA submission and its UK-based regulatory study for post-acute infection syndrome for submission to the MHRA.

As part of the agreement, Virax reduced the exercise price of outstanding Series A and Series B Preferred Investment Options for up to 1.2 million ordinary shares from $2.934 to $0.40 per share and extended their term to five years from the effective date of an initial registration statement.

The securities were sold in a private placement exempt from Securities Act registration requirements. Virax agreed to file a registration statement with the SEC for the resale of ordinary shares issuable upon exercise of the warrants and options within 45 days.

The London-based company focuses on developing T cell-based test technologies for immunology profiling, particularly for diagnosing post-acute infection syndromes including long COVID.

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