Yorkville Advisers LLC will invest up to $3 million over five years in Vaxil Biotherapeutics Ltd. (TASE: VAXL-M), which is developing vaccines for cancer and tuberculosis, via a reverse equity pricing agreement (REPA).
A REPA is a mechanism for obtaining regular financing (in exchange for allocations of shares) based solely on the past share price (known to the company in advance and exclusively at the company's timing). It does not include short sales of shares, in order to prevent pressure on the share price.
Vaxil Bio also reports that it has received a $300,000 convertible loan. It will allot to Yorkville 300,000 options exercisable for shares through October 2016 at a strike price of NIS 4.60.
The company's share price rose 8.6% in morning trading today to NIS 1.72, giving a market cap of NIS 10 million.
Vaxil Bio president and CFO Julian Levy said, "We are pleased to report an agreement that will enable us to accelerate the development of the company's products, including the vaccine ImMucin for the treatment of multiple myeloma."
Published by Globes [online], Israel business news - www.globes-online.com - on July 14, 2013
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