NEW YORK – Virax Biolabs announced this week that it has entered into a definitive purchase agreement that will raise approximately $4 million in gross proceeds.
The purchase agreements include 3,843,309 ordinary shares, Series A preferred investment options to purchase up to an aggregate of 3,497,412 ordinary shares, and Series B preferred investment options to purchase up to an aggregate of 3,843,309 ordinary shares at a purchase price of about $1.04 per share. Both the Series A and Series B options have an exercise price of about $.80 per share and will be exercisable immediately upon issuance for five and a half years from the date of issuance, the company said in a statement.
The London-based firm plans to use the funding to develop and commercialize its proprietary T-cell test technology and for working capital, as well as for other general corporate purposes. The placement is expected to close on March 10, and H.C. Wainwright is acting as the exclusive placement agent for the offering. Warrants to purchase 3,495,000 shares for $1.73 per share issued in a private placement from November will be canceled with the closing of this week's placement, the company added.
In a separate announcement this week, Virax announced that it has entered an agreement with an undisclosed company to distribute an avian influenza A virus (AIV) PCR test kit in countries accepting the CE mark. The kit detects and differentiates RNA from AIV and the H5, H7, and H9 subtypes.