Novavax To See More Downside After Thursday's 34% Plunge? Vaccine Maker Prices Stock Offering At 13% Discount - Novavax (NASDAQ:NVAX)


Shares of Maryland-based coronavirus vaccine manufacturer Novavax Inc. NVAX plummeted over 34% on Thursday as traders reacted negatively to its equity and debt offering. The company announced the terms of the dual offerings late Thursday.

What Happened: Novavax said it has priced its underwritten public offering to sell 6.5 million shares of its common stock at $10 per share. This represents a discount to the $11.32 price at which the stock closed on Thursday following the precipitous drop.

The company expects net proceeds of $60.7 million from the offering, which is expected to close on Dec. 20.

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Novavax said it has priced the debt offering of $150 million worth of 5% convertible senior notes due in 2027, and this debt is being offered to qualified institutional buyers.

The notes are senior unsecured obligations and will accrue interest, payable semi-annually in arrears. They mature on Dec. 15, 2027, and will be convertible at an initial conversion price rate of $12.50 per share. The company expects net proceeds from the note offering to be about $142.2 million.

Novavax intends to use the total net proceeds from both offerings for general corporate purposes, including continued global commercial launch of its Nuvaxovid COVID-19 vaccine, debt repayment, R&D expenses and capex, among other things.

Why It’s Important: Novavax’s growth prospects going forward is uncertain. The uptake of its COVID-19 vaccine, its only commercial product thus far, is likely to be impacted by the abatement of the pandemic in most countries.

Price Action: Novavax settled Thursday’s session down 34.30%, at $11.32, according to Benzinga Pro data. The stock has shed an incremental 1.77% in after-hours trading.

Read Next: Novavax Terminates Agreement With GAVI Alliance For Sale Of Its COVID-19 Vaccines


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