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NESS-ZIONA, ISRAEL – March 4, 2020 – VAXIL BIO LTD. (“Vaxil” or the “Company”) (TSX VENTURE: VXL), an innovative immunotherapy biotech company specializing in cancer and infectious diseases, announces that, subject to receipt of final TSX Venture Exchange (“Exchange”) approval, it has closed on $36,000 (“Convertible Debenture Proceeds”) of convertible debentures from third parties (see press release of February 21, 2020) and $95,000 (“Debenture Proceeds”) of non-convertible debentures to certain insiders (“Debentures”). The Debentures form part of a larger offering for maximum proceeds of $164,000.
The Debentures bear an annual interest rate of 10% (“Debenture Interest”). The Debentures and Debenture Interest will be repayable within two years. The Company shall have the right, but not the obligation, in its sole and absolute discretion, to pay and satisfy the Debenture Interest by the issuance of Common Shares (in accordance with Exchange policies). An additional $69,000 of Debentures remains to be placed.
The Company also announces that as of March 3, 2020, $352,000 (“Warrant Proceeds”) has been received from the exercise of 3,520,000 warrants, having an exercise price of $0.10 per warrant, that were previously issued in January 2018. Upon exercise of the warrants an additional 3,520,000 common shares of the Company will be issued.
Aggregate proceeds from the Debenture Proceeds, the Convertible Debenture Proceeds and the Warrant Proceeds will be used as a bridge financing to fund the Company’s corona virus (COVID-19) vaccine, including manufacturing a product for clinical trials, while the Company continues to explore additional financing avenues in order to be able to advance its research agenda.
We are also pleased to announce that the World Health Organization (“W.H.O”) has included Vaxil in a list of companies and institutions working on a vaccine candidate. (https://www.who.int/blueprint/priority-diseases/key-action/novel-coronavirus-landscape-ncov.pdf?ua=1)
“I want to thank the board and other investors for their support in our efforts to move forward aggressively to develop our Vaccine Candidate for Corona / COVID-19. The proceeds from this bridge financing and exercise of warrants are being applied to advance our work in this area”, said David Goren, Vaxil’s Chairman and Chief Executive Officer, who went on to say that “We are also honored to be included by the WHO among other global companies and leading institutions working on a vaccine solution to prevent the current corona virus outbreak from recurring. We continue to have discussions with potential partners in the industry to accelerate our development and time to market.”
Vaxil’s Vaccine Candidate is based on unique and patent protected signal peptide technology, utilizing Vaxil’s proprietary VaxHitTM bioinformatics platform. The Vaccine Candidate’s design is also based on successful in vivo experiments testing a tuberculosis signal peptide vaccine. The work being performed may also lead to the application of a broad platform to address future epidemics / pandemics such as Corona, SARS (Severe Acute Respiratory Syndrome) and MARS (Middle East Respiratory Syndrome).
Vaxil is an Israeli immunotherapy biotech company focused on its novel approach to targeting prominent cancer markers and infectious diseases. Its lead product ImMucin™ successfully completed a Phase 1/2 clinical trial in multiple myeloma and received orphan drug status from the FDA and EMA. The company continues to develop ImMucintm and is also developing a tuberculosis vaccine / treatment that has demonstrated promising preliminary results with further preclinical evaluation underway at a top US academic and research institution. Additional indications and mAb candidates are under evaluation as immuno-oncology and infectious disease treatments alone and in combination with other treatments.
Vaxil exploits the unique properties of signal peptide domains on crucial proteins to develop targeted therapies against cancer targets and infectious disease pathogens. These signal peptide domains are identified by VaxHit™, Vaxil’s proprietary bioinformatic approach. These SPs induce a robust T- and B-cell response across wide and varied HLA subtypes, while acting as true, universal neoantigens. The peptide platform targets these cells by “educating” or specifically activating the immune system to recognize and attack the affected cells. In addition, Vaxil’s mAb platform directly recognizes the target protein expressed on malignant cells and recruits other elements of the immune system to lyse those cells.
Disclaimer: The TSX Venture Exchange Inc. has in no way passed upon the merits of the Company has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors – including the availability of funds, the results of financing efforts, the results of exploration activities — that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein in the United States or elsewhere. These securities have not been, and will not be, registered in the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.