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Novavax, Inc. (NASDAQ:NVAX)’s Makes An IPO Announcement, Traders Exercise Caution

Boston, MA 06/09/2014 (wallstreetpr) – Novavax, Inc. (NASDAQ:NVAX), a bio-pharmaceutical company that works arduously on commercialization, development and discovery of vaccines and adjuvants prepared from recombinant nanoparticles, announced an offer to sell of IPO.

A $100M IPO

NVAX intends to sell out its common stocks worth $100 million, subject to congenial market conditions and such other conditions, by the virtue of underwritten Initial Public Offering or IPO.

Novavax, Inc. (NASDAQ:NVAX) intends to grant a 30-days’ window to the underwriters to go about purchasing an additional quota of $15 million common stocks. However, the company hasn’t quite shared or guaranteed any statistics pertaining to the size, successes and terms or conditions of this IPO.

The offering’s book-running processes shall be managed by JP Morgan and Citigroup. The revenues obtained from the IPO sell-out shall be utilized for corporate purposes, and expenses pertaining to preclinical researches, augmented manufacturing developmental processes and rigorous advancement on NVAX’s clinical-stage vaccines. Besides, the company shall chalk out plans for capital expenses and myriad other strategic purposes from the proceeds obtained.

Since the time this whopping IPO announcement was made, NVAX’s market capitalization slid from its over-$1 billion mark by $100 million on June 5 and traded further down, touching at $871.63 million, by the end of market activity on June 6, 2014.

NVAX’s $210M Cash Plans

Novavax, Inc. (NASDAQ:NVAX) made an IPO, the second time during the last 1 year. During September 2013, NVAX garnered $80 million by selling off 27.2 million shares, priced at $3.14/share! Over the past 9 months, the NVAX shares have bloated up, soaring above 52%. The company has $110 million cash on hand and is currently operating at a cash-burn rate of $20million/quarter, on average.

The financial estimates clearly depict that NVAX can withstand operating at the current cash flow rate for more than 1 year. If the company bags another $100 million from the IPO, it shall have enough cash to sustain itself for another year! During this 2-year period, NVAX needs one of its innovative and well-researched products to obtain the required regulatory approval, to mitigate any further chances in the near future, to raise funds by the virtue of IPOs.

Meanwhile, the CEO and President of Novavax, Inc. (NASDAQ:NVAX), Stanley C. Erck presented one of its promising innovation portfolios in Jefferies Global Healthcare conference on June 5, 2014. Though the investors have turned cautious and bearish over NVAX’s latest IPO, the rumor mills around that the stock has a prospective future in FY 2014-15!

Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing.

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