Boston, MA 06/06/2014 (wallstreetpr) – Novavax, Inc. (NASDAQ:NVAX) announced that it will bring a secondary offering of $100 million in new stock. The stocks took a hit and plunged by more than 7%. The company has announced the pricing of the public offering of 25 million shares of common stock. The underwritten public offering offered will be available to public at $4 per share. It will generate gross proceeds of around $100 million for the company. An amount of approximately $94 million will be deducted as underwriting discount from the net proceeds. The underwriters will have a 30 day option to purchase up to $15 million in additional 3.75 million shares. If it succeeds, the total shares offered will reach 28.75 million shares of its common stock.
The Purpose Of Offering
Novavax, Inc. (NASDAQ:NVAX) wants to use the net proceeds for the purpose of research investment in its clinical stage vaccine candidates. It will fund the per-clinical research programs. Further, the proceeds will be used in the manufacturing and process development activities. The rest of the proceeds will work to fulfill the capital expenditures and the other strategic purposes. The basic aim to cover the funds needs arising out of the general corporate activities. The public offering will stay open till june11, 2014.
The Impact Of Offering
Novavax, Inc. (NASDAQ:NVAX) is coming up with a huge offering of $100 million in new stock. It is the second time the company has brought the public offering. It brought the first offering in the month of September 2013 priced at $3.14 per share. The public offering is affecting the stock price adversely. The market cap of Novavax, Inc. (NASDAQ:NVAX) has fallen in last few days. But it is a temporary result of the offering. The stock price has increased by more than 52% since its first offering in last September. The company expects the same performance in next few months.
