Evaxion Biotech granted 180-day compliance extension by Nasdaq

Evaxion Biotech (EVAX) has received notice from the Nasdaq Stock Market that it has been granted a 180-day extension to comply with Nasdaq’s minimum stockholder’s equity requirement. Meanwhile, Evaxion has already restored its equity above the Nasdaq minimum requirement. The extension allows Evaxion until May 12, 2025, to formally evidence compliance with Nasdaq listing rule 5550(b)(1) requiring stockholders’ equity of at least $2.5M. Evaxion requested extension before a Nasdaq hearings panel, presenting the company’s plan to regain and stay in compliance and maintain its Nasdaq listing, which has so far been executed and tracking ahead of plan. In recent weeks, Evaxion has restored its equity above the $2.5M minimum through exercise of prefunded warrants and sales of its American Depositary Shares through its ATM-facility. This has also extended the company’s cash runway until the fourth quarter of 2025. In total, Evaxion has secured additional cash and equity amounting to $7.8M through these means. Further, Evaxion are in discussions with the European Investment Bank about conversion of EUR 3.5M out of Evaxion’s EUR 7M loan with EIB, which is expected to increase Evaxion’s equity by $3.7M immediately upon completion and help Evaxion continue to remain in compliance. An agreement between Evaxion and EIB would be subject to certain conditions and is still expected to be finalized and implemented in the first quarter of 2025, e.g. before the new deadline set by Nasdaq.