BioVaxys Announces Private Placement and Debt Settlement

BioVaxys Technology Corp. (CSE: BIOV) (FRA: 5LB) recently announced the closing of the first tranche of its non-brokered private placement and a debt settlement agreement. The company raised $1,240,617 through the issuance of 24,812,340 units, with each unit consisting of one common share and one whole share purchase warrant. The warrants are convertible into additional shares at an exercise price of $0.15 for a period of 24 months from the date of issue. The company also announced a debt settlement agreement with an arm's-length consultant, involving the issuance of 5,000,000 shares at a deemed price of $0.10 per share.

The private placement was originally announced on July 23, 2024, with an initial target of raising up to $500,000 through the issuance of up to 10,000,000 units. The offering was subsequently upsized on July 26, 2024, and September 20, 2024, with the target amount increasing to $1,000,000 and $1,500,000, respectively. The company closed several tranches of the private placement between July 29, 2024, and October 4, 2024.

In addition to the private placement, BioVaxys announced its intention to issue 1,196,908 units of the company, each priced at $0.03, in connection with funds received pursuant to its private placement offering announced on January 8, 2024. These units, known as Proposed Units, consist of one common share and one whole common share purchase warrant, with each warrant convertible into one additional common share at an exercise price of $0.05 for a period of 24 months from the date of issue. The issuance of the Proposed Units aims to correct the number of securities that should have been issued in the $0.03 Unit Tranches, as the company failed to convert funds received in United States currency to Canadian dollars when calculating the number of securities to issue.

The debt settlement agreement involves the issuance of 5,000,000 shares at a deemed price of $0.10 per share, reducing the company's debt by $500,000. This agreement improves BioVaxys' liquidity and cash flow situation by eliminating a significant financial obligation. However, the issuance of shares also increases the company's equity, potentially enhancing its financial flexibility and ability to pursue growth opportunities. The dilution effect of the share issuance should be considered, as it may impact the value of existing shares.

BioVaxys' announcement of the closing of the first tranche of its private placement and the debt settlement agreement reflects the company's efforts to strengthen its financial position and pursue growth opportunities. The successful completion of the private placement demonstrates investor confidence in the company's prospects, while the debt settlement agreement helps to reduce financial obligations and improve liquidity. As BioVaxys continues to develop its novel immunotherapies based on the DPX™ immune-educating technology platform and its HapTenix© 'neoantigen' tumor cell construct platform, investors will be watching closely to see how these financial maneuvers impact the company's future growth and success.