Evaxion Biotech A/S – ADR (NASDAQ: EVAX) stock price fell 44% during premarket trading after raising $24 million via a discounted share subscription.
As covered in this article, the biotech company, which rose 236% during premarket trading yesterday, saw its shares fall following the discounted bookbuild.
Evaxion sold 3.43 million shares at $7.00 each, triggering today’s decline to the $7.10 price level. Oppenheimer led the bookbuild for the share offering.
As reported in yesterday’s article, the company initially wanted to offer 5.2 million shares to raise $40 million but reduced to 3.43 million shares.
Inventors who chased Evaxion shares higher yesterday are sitting on significant losses, especially if they bought at the highs.
However, even traders who bought the company’s shares at the closing price of $12.68 are sitting on a 44% loss.
Still, this does not mean that Evaxion shares will not rally again. Only time will tell whether yesterday’s bullish investor sentiment will return.
As for the biotech company’s fundamentals, I highlighted its deal with Merck & Co. to test its cancer immunotherapy treatment EVX-01 in collaboration with Merck’s Keytruda, which could turn into a lucrative commercial agreement if successful.
The two companies are currently running a phase 2b clinical trial on patients with stages III and IV metastatic melanoma.
*This is not investment advice.
Evaxion stock price.
Evaxion stock price was down 44.01% during premarket trading to trade at $7.10 after falling from Thursday’s closing price of $12.68.
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