Evaxion Biotech pursues agreement with EIB to bolster equity

Evaxion Biotech (EVAX) is pursuing a significant expected enhancement of its equity and capital structure through a conversion of debt into equity. Evaxion is currently in advanced discussions with the European Investment Bank, EIB, about conversion of EUR 3.5M out of Evaxion’s EUR 7M loan with EIB into an equity-type instrument. A conversion is expected to increase Evaxion’s equity by $3.7 million immediately upon completion and constitutes an important part of Evaxion’s plan to ensure ongoing compliance with the Nasdaq listing requirements. Evaxion has no debt besides the EIB-loan, so the conversion would also substantially reduce the company’s overall liabilities, simplify its balance sheet and improve its financial flexibility and cash flow.