Biondvax Pharmaceuticals (BVXV) Stock: Why It’s Up 10.62%

  • Biondvax Pharmaceuticals (BVXV) stock price rose 10.62% in the last trading session. That’s why.

Biondvax Pharmaceuticals (BVXV) stock price rose 10.62% in the last trading session.

Why: Company Announcements

1.) BiondVax Pharmaceuticals announced yesterday that it has filed a registration statement (Form F-1) with the SEC for an offering of BiondVax American Depositary Shares (ADSs) with firm commitments. And once declared effective by the SEC, Form F-1 can be used to raise capital.

2.) BiondVax is currently developing a nanoscale antibody (NanoAb) for the treatment of COVID-19 under an exclusive worldwide license, developed by researchers at the Max Planck Institute for Multidisciplinary Sciences (MPG) and the University Medical Center Göttingen (UMG). And as recently reported, BiondVax intends to initiate a proof-of-concept preclinical study of the COVID-19 NanoAb as an inhalation therapy in COVID-19 infected animals in the coming weeks. Assuming successful results, a first human phase 1/2a clinical trial with inhaled COVID-19 NanoAb therapy will be initiated in 2023.

Under the 5-year BiondVax-MPG-UMG Research Collaboration Agreement (RCA) for additional “biobetter” NanoAbs, MPG’s Professor Dirk Görlich and his team have successfully generated, identified and isolated NanoAbs that address a number of additional biological targets. Professor Görlich and his colleague Professor Matthias Dobbelstein from the UMG confirmed that the new NanoAbs have a strong affinity for their biological target molecules and a high degree of thermostability. And the research teams have also demonstrated strong neutralization of their respective target molecules by several NanoAb candidates. Based on the above advances, BiondVax decided earlier this month to initially focus on further pipeline development, starting with NanoAbs as drug candidates for the potential treatment of psoriasis, psoriatic arthritis and asthma.

These recent successful developments provide BiondVax with an opportunity not only to initiate a Phase 1/2a clinical trial of its inhaled COVID-19 therapeutic NanoAb next year as planned, but also to significantly expand its portfolio of NanoAbs in development. However, the proceeds from the F-1’s contemplated firm commitment to share issuance are expected to provide BiondVax with the capital needed to continue aggressively executing its strategy.

3.) Plus BiondVax received a notification letter from The Nasdaq Stock Market dated September 28, 2022 advising BiondVax that it does not comply with Listing Rule 5550(b)(1) which requires companies listed on the Nasdaq Capital Market a minimum of $2.5 million in equity for continued listing. Nasdaq’s notification letter was based on BiondVax’s Form 6-K/A dated August 29, 2022, disclosing financial information for the period ended June 30, 2022, showing equity of $1,277,000 and stating that BiondVax that does not meet alternatives of market value of listed securities or net income from continuing operations.

The letter states that under Nasdaq’s listing rules, BiondVax has 45 calendar days to submit to Nasdaq a plan to regain compliance with the minimum stock listing requirement for shareholders. And if a plan is proposed by BiondVax and accepted by Nasdaq, Nasdaq may grant BiondVax an extension of up to 180 days from the date of the Nasdaq letter to demonstrate compliance with minimum stock listing requirements for shareholders. If BiondVax submits a plan and the plan is not accepted by Nasdaq, BiondVax will have the opportunity to appeal such decision to a Nasdaq Hearings Panel under Nasdaq Listing Rule 5815(a).

The notification letter has no immediate impact on the listing of BiondVax’s ADSs and its ADSs continue to trade on the Nasdaq Capital Market under the symbol “BVXV” at this time. And the proposed share offering, if consummated, would address the shareholders’ lack of equity. As such, BiondVax will take further definitive steps to regain and maintain compliance with Nasdaq listing rules.

KEY QUOTE:

“As we updated last week, in addition to the upcoming COVID-19 NanoAb milestones, we intend to follow exciting advances made by our scientific staff at the Max Planck Institute for Multidisciplinary Sciences (MPG) and the University Medical Center Goettingen (UMG). Pre-development of further NanoAbs to treat diseases such as asthma, psoriatic arthritis and psoriasis. While the stock market remains unfavorable, particularly for small-cap companies, we believe that aggressively advancing our programs is the best way to create shareholder value, which will be reflected when the market regains some stability. We consider the registration statement for a proposed share offering filed yesterday to be part of a well-crafted series of activities to ensure BiondVax continues to deliver. Although the decision to proceed with an offer was made prior to writing the non-compliance, we are optimistic that successful completion of the offer will remedy the deficiency and put the issue behind us. As a precautionary measure, we will take additional measures in parallel, consistent with our proactive approach to restructuring our loan from the European Investment Bank, as previously announced.”

— Amir Reichman, CEO of BiondVax

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